This paper presents the effect of the magnetic problem of a functionally graded (FG) hollow sphere subjected to mechanical and thermal loads. An analytical solution for stresses and perturbation of the magnetic field vector were determined using the direct method and the power series method. All of the material properties varied continuously across the thickness direction according to the power-law functions of radial directions. The aim of this work was to understand the effect of the magnetic field on a FG hollow sphere subjected to mechanical and thermal loads. The magnetic field decreased the radial displacement and circumferential stress due to mechanical load, and had a negligible effect on mechanical radial stress. The magnetic field also increased the radial displacement and the radial and circumferential stresses due to thermal load. Increasing the power-law indices of the functionally graded material (FGM) decreased all of the above quantities due to mechanical load.