Radial basis functions (RBFs) are extensively employed in mesh‐free methods owing to their distinct properties. This study presents a novel RBF formulation based on a modified first‐kind Bessel function, introduced for the first time. The efficacy and precision of the proposed function are assessed through an examination of the free vibrations of Euler–Bernoulli beams composed of two‐directional functionally graded materials. Longitudinal and thickness property variations are modeled in polynomial and exponential forms, respectively. The performance of the novel RBF is scrutinized under various boundary conditions (clamped, simply supported, and free), and comparative analyses are conducted against similar investigations and an RBF based on the first‐kind Bessel function. Convergence analysis of the proposed modified first‐kind Bessel function‐based RBF reveals superior convergence rates compared to the first‐kind Bessel function‐based RBF. Moreover, a comparison between results obtained from modeling using the proposed RBF and exact solutions underscores the adequacy of this approach, with a maximum discrepancy of 4.933% observed under clamped‐free boundary conditions. In essence, the findings suggest that the proposed modified first‐kind Bessel function‐based RBF holds promise for analyzing the free vibrations of functionally graded Euler–Bernoulli beams. The primary aim of this research is to introduce and validate a new RBF based on a modified first‐kind Bessel function for the analysis of free vibrations in Euler–Bernoulli beams made of two‐directional functionally graded materials. The study focuses on evaluating the performance and accuracy of this novel RBF in comparison with existing RBFs and exact solutions. By addressing the limitations of conventional RBFs and proposing an innovative approach, this research aims to enhance the accuracy and efficiency of meshless methods in structural vibration analysis.