In this work, the heat conduction with finite wave heat speed of multi-layered domain made of functionally graded materials (FGMs) subjected to heat generation is simulated. For this purpose, the domain is divided into a set of mathematical layers, the number of which can be equal or greater than those of the physical layers. Then, in each mathematical layer, the non-Fourier heat transfer equations are employed. Since, the governing equations have variable coefficients due to FGM properties, as an efficient and accurate method the differential quadrature method (DQM) is adopted to discretize both spatial and temporal domains in each layer. This results in superior accuracy with fewer degrees of freedom than conventional finite element method (FEM). To verify this advantages through some comparison studies, a finite element solution are also obtained. After demonstrating the convergence and accuracy of the method, the effects of heat wave speed for two different set of boundary conditions on the temperature distribution and heat flux of the domain are studied. (C) 2011 Elsevier Ltd. All rights reserved.