In multilayered structures, sharp interface is formed between the layers of dissimilar materials. "t this interface, the large difference in thermal expansion coefficients of the two dissimilar materials generates residual thermal stresses during subsequent cooling. These stresses lead to cracking at the interface, and these cracks lead to the deterioration of mechanical properties, and finally crack propagation leads to the delamination of the multilayered structure. Scientific progress in the field of material technology, and the continuing developments of modern industries have given rise to the continual demand for ever more advanced materials with the necessary properties and qualities. The need for advanced materials with specific properties has brought about the gradual transformation of materials from their basic states monolithic to composites. Recent advances in engineering and the processing of materials have led to a new class of graded multilayered materials called Functionally Graded Materials FGMs . These materials represent a second generation of composites and have been designed to achieve superior levels of performance. This chapter looks at the best processing technologies and the uses and applications of the advanced, high quality products generated, and also presents an extensive review of the recent novel advances in Functionally Graded Ceramics FGCs , their processing, properties and applications. The manufacturing techniques involved in this work have involved many concepts from the gradation, consolidation and different sintering processes. Each technique, however, has its own characteristics and disadvantages. In addition, the FGC concept can be applied to almost all material fields. This chapter covers all the existing and potential application fields of FGCs, such as engineering applications in cutting tools, machine parts, and engine components, and discusses properties of FGCs such as heat, wear, and corrosion resistance plus toughness, and their machinability into aerospace and energy applications.