Elastic stress analysis of rotating variable thickness annular disk made of functionally graded material (FGM) is presented. Elasticity modulus, density, and thickness of the disk are assumed to vary radially according to a power-law function. Radial stress, circumferential stress, and radial deformation of the rotating FG annular disk of variable thickness with clamped-clamped (C-C), clamped-free (C-F), and free-free (F-F) boundary conditions are obtained using the numerical finite difference method, and the effects of the graded index, thickness variation, and rotating speed on the stresses and deformation are evaluated. It is shown that using FG material could decrease the value of radial stress and increase the radial displacement in a rotating thin disk. It is also demonstrated that increasing the rotating speed can strongly increase the stress in the FG annular disk.