A novel approach of fabricating SOFC anode comprising graded compositions in constituent phases having layer wise microstructural variation is reported. Such anode encompasses conventional NiO-YSZ (40 vol% Ni) with higher porosity at the fuel inlet side and Ni-YSZ electroless cermet (28-32 vol% Ni) with less porosity toward the electrolyte. Microstructures and thicknesses of the bilayer anodes (BLA) are varied sequentially from 50 to 250 mu m for better thermal compatibility and cell performance. Significant augmentation in performance (3.5 A cm(-2) at 800 degrees C, 0.7 V) is obtained with engineered trilayer anode (TLA) having conventional anode support in conjunction with layers of electroless cermet each of 50 mu m having 28 and 32 vol% Ni. Engineered TLA accounts for substantial reduction both in cell polarization (ohmic ASR: 78 m Omega cm(2) versus 2835 m Omega cm(2); cell impedance: 0.35 Omega cm(2) versus 0.9 Omega cm(2)) and degradation rate (76 mu V h(-1) versus 219 mu V h(-1)) compared to cells fabricated with conventional cermet. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.