Abstract: The fabrication. microstructure and mechanical properties of ZrO2-Ni functionally gradient materials (FGM ) have been studied. FGM as well as non-FG M of ZrO2-Ni system was developed by powder metallurgical process. X-ray diffractometer (XRD ). electron probe microanalyzer (EPMA), scanning electron microscope (SEM ) and optical microscope were employed to investigate the crystalline phases. chemical composition and microstructure Experimental results demonstrate that the composition and microstructure of ZrO2-Ni FGM have the expected gradient distribution. There are no distinct interfaces in the FGM due to the gradient change of components. that is, the constituents are continuous in microstructure everywhere. Moreover, Vickers hardness and flexural strength were measured for the common composites as a function of composition. It is made clear that the mechanical properties of the FGM vary corresponding to the constitutional changes as well