Abstract <p>Functionally Graded Materials (FGMs) are a revolutionary class of materials whose properties are varied along specific dimensions, allowing properties that are as diverse as mechanical strength and thermal resistance to be integrated in one member. This unique property makes FGMs very suitable for advanced engineering applications in aerospace, biomedical, and energy industries. This review focuses on static and dynamic behaviors, material gradation, and nonlinearities of FGMs. Advanced computational techniques have been used, considering Finite Element Method (FEM) and many other methods, in order to highlight the strong influence of material gradation on important issues such as the investigation of stress distribution, deformation, vibration, and wave propagation. Despite these promising advances, poor experimental validation, the relatively unexplored multidirectional FGMs, and a lack of understanding concerning environmental effects are still major challenges. Specific gaps to be addressed relate to scalable manufacturing techniques, sustainability-driven production methods, and rigorous experimental validation with the aim of achieving long-term reliability in real service conditions. This review uniquely integrates insights on computational modeling and sustainable manufacturing while charting a roadmap for future research. FGMs will no doubt bridge the existing gaps and bring about a revolution in engineering, innovate, and meet the ever-evolving demands of state-of-the-art technologies.</p>