This study developed new advanced composite materials consisting of functional grading of 316L and Al2O3 specially designed for potential biomedical applications. Mechanical properties were characterized by tensile testing, and microstructural properties by optical microscope, scanning electron microscope (SEM), and Energy Dispersive X-Ray (EDX) analyses. The uniform mixture in the material, up to 40% by weight of Al2O3, is uniformly distributed in the 316L matrix that shows disintegration. Then, samples with 2, 3, 4, and 5 layers were produced in functionally graded 6, 7, 8, and 9 material types, respectively. The layer thicknesses were formed with an average of 900 µm. The results show that new composite materials can be produced functionally using 316L and Al2O3 in a layered manner. As a result of the mechanical experiments, it has been observed that the tensile strength of the layered composite structures remains within the range of 91–191 MPa, depending on the layer type. It has been observed that the elongation varies between 3.16 and 12.46%. According to these results, the materials obtained are considered suitable for use as an alternative prosthetic material in biomedical applications. The tensile strength, % elongation of the Composition 7, and yield strength of functionally graded (316 + (316L-10 Al2O3) + (316L-20 Al2O3) + (316L-30 Al2O3)) material are 123 megapascals (MPa), 7.3%, and 111MPa, respectively, and according to the literature, the mechanical strength of human bone is very close to this composition properties.