For the first time, ceramic precursors were applied in the powder metallurgy (P/M) preparation of Functionally Graded Materials (FGM). Two types of FGMs were prepared : Al/SiC for possible aerospace applications and Cu/SiC for dynamic seal applications. There are two main advantages of using ceramic precursors for P/M preparation of FGMs (1) avoidance of the commercially used debinding step and (2) shrinkage control of the individual layers of the composite.