The study aims for potential utilization of red mud (an industrial waste) to be utilized as a wear-resistant material.Investigations on mechanical and wear characteristics of red mud epoxy based homogeneous and their functionally graded materials (FGMs) developed with an intent of probable application in tribological systems are presented. The influence of significant operational parameters, material parameters, and their subsequent influences among themselves are explored. A specially designed experimental series is performed on a pin-on-disk machine with three different sliding velocities 105, 209, and 314 cm/s under three different loading conditions of 20, 30, and 40 N and compares the experimental results with the reported theoretical wear model. Artificial neural network approach is also applied to the wear data for subsequent validation. The comparative study indicates that although the homogeneous composites and FGMs exhibit relatively inferior mechanical properties, the sliding wear performance of the FGMs is better than homogeneous composites. It is also found that out of all synthesized composites FGMs exhibit the maximum impact strength and tensile modulus, which clearly indicates that the gradation achieved because the centrifugation technique enhances the crack arresting capability of the materials. The measured Young's moduli of homogeneous composites and FGMs were compared to standard theoretical prediction models. The measured moduli values showed good harmony with those predicted from Halpin-Tsai and Kerner models. Transmission electron microscopy microstructures confirm the continuous graded dispersion of red mud particles in the matrix. C 2015 Wiley Periodicals, Inc. Adv Polym Technol 201 , wileyonlinelibrary.com.