Functionally graded materials (FGMs) offer tailored properties by gradually varying composition and microstructure across the material volume. Directed Energy Deposition (DED), a form of additive manufacturing, provides precise control over material placement, making it an ideal process for fabricating FGMs. This study explores the design methodology, process parameters, and material characterization of FGMs fabricated using DED. Microstructural analysis, mechanical testing, and thermal evaluation were conducted to assess the gradation effects. The findings demonstrate the potential of DED-fabricated FGMs in high-performance engineering applications, with improved hardness, wear resistance, and thermal stability across the material gradient.