Functionally graded materials (FGM) in the form of layered structure consisting ofyttria stabilized zirconia (YSZ) and nickel were fabricated by spark plasma sintering procedure.The relative density, linear shrinkage and Vickers hardness of each layer of graded materialswere measured. The microstructure and the composition of these components were studied. Theresults obtained show that functionally graded materials produced by spark plasma sinteringexhibited a low porosity level and consequently fully dense specimens. Also, the resultsdemonstrate that the composition and microstructure of YSZ/Ni FGM have the expected gradientdistribution. There are no macroscopic distinct interfaces in YSZ/Ni FGM due to the gradientchange in components. This good continuity of microstructure can eliminate the disadvantage oftraditional macroscopic interface in YSZ/Ni joint, and reflect the design idea of FGM. Vicker’shardness of YSZ/Ni is lower than that of pure zirconia (YSZ) and increases by increasing therelative density of the layer of YSZ/Ni.