One of the most important factors in powder metallurgy is the powder properties that directly affect the final product properties. By using the functionally graded materials (FGMs) in powder metallurgy, the desired properties can be obtained by means of layers having microstructure having more than one feature in a single material structure. Similarly, by the production of functionally graded powders (FGPs), different properties can be obtained in a single powder structure and the materials that have different properties in the same structure are developed by integrating these powders with powder metallurgy. In this context, the FGMs synthesized from the FGPs produced by electroless deposition (ED) of metal or ceramic-based powder materials facilitates the production of advanced material. Therefore, the purpose of this chapter is on the fabrication of metal and ceramic-based FGPs by ED and to discuss of their advantages on the powder metallurgy parts.