Functionally graded materials (FGMs), with ceramic and metallic constituents, are frequently used for tremendous high temperature applications. In this paper, six sets of FGMs samples were designed and fabricated using powder technology technique. All FGMs were sorted according to the conditions of sintering (i.e. temperature and time). The ceramic constituents were represented by (Al2O3) and the metallic constituents were represented by (Ni).It is found that as the sintering temperature and time increased, the apparent density was increased and porosity was reduced. (F-FGM, sintered at 1350°C for 3 hrs.) sample seems to impart high and slight linear graded microhardness across the layers without any obvious jumps throughout the thickness. The interfacial microhardness values were found very close to the bulk microhardness of adjacent layers. The reason behind such behavior is the minimum porosities and improved apparent density due to the efficient sintering practices (i.e. 1350°C and 3 hrs.) and uniform mutual diffusion of (Ni) and (Al2O3) particles across the layer interfaces. As the sintering time and temperature increase, the microstructure becomes much denser and the interfaces become more homogeneous that lead to eliminate the discontinuity in microstructure. A Finite element method throughout the COMSOL Multiphysicswas used extensively in estimation of temperature distribution through the thickness as well as residual stresses that induced as a result of high temperature loading of fabricated FGM. The model also shows aclear fluctuation of stresses along the thickness that imparts a development of stress concentration regions near the interfaces of layers, especially at the lower half region of FGM that was enriched by (Ni). Stresses clearly become normal variables with thickness at the upper half of FGM that enriched with (Al2O3).