This research presents the investigation of mechanical and thermal characteristics as well as fracture toughness of Polypropylene (PP) based functionally graded materials (FGMs) and compares them vis-a-vis PP based homogeneous composites and neat PP. FGMs and homogeneous composites are fabricated with 15 wt.% and 30 wt.% glass fiber-reinforced PP. The gradient of fiber distribution in functionally graded materials is verified by scanning electron microscope analysis and ignition loss test. Findings of this work reveal that FGMs outperform neat PP and homogeneous composites. Tensile, flexural and compression strength of FGMs are found to be better as compared to neat PP and homogeneous composites. Fracture toughness and thermal conductivity are also found higher for FGMs. The performance of fabricated composites is optimized by using the VlseKriterijuska Optimizacija I Komoromisno Resenje (VIKOR) method.