The preparation and investigation of functionally graded polymer nanocomposites, which have a concentration gradient of cellulose nanocrystals (CNCs) along one direction, is reported here. As a test bed, a series of nanocomposites consisting of a thermoplastic polyurethane (PU) and 0–15% w/w CNCs is prepared via solvent casting and the mechanical properties of films of these materials are characterized by dynamic mechanical analyses and tensile tests. The formation of graded materials is accomplished by lamination of films with varying CNC content. The processing conditions are optimized to achieve intimate fusion of the individual layers. The elimination of internal interfaces is evidenced by an elongation at break of up to 500%. In order to explore potential applications of graded PU/CNC nanocomposites, structure‐dependent actuation in response to water is demonstrated in a bioinspired architecture. In addition, the damping behavior of cylindrical shaped composites is investigated by way of compression tests. The results show that functionally graded PU/CNC composites show good damping behavior over a much larger range of forces than the neat PU or the homogeneous nanocomposites.