A novel technique for fabricating functionally graded materials (FGMs) of stainless steel/zirconia system has been developed. Composite particles coated with 3Y-PSZ powder on SUS316L particles were used as starting powders. The designing of the gradational distribution of SUS316L and 3Y-PSZ was achieved by adding vibration to stacked powder beds of composite particles with differential blending ratio(from10wt.%-90wt.% in10%steps)respectively. The interface of several stacked layers of differential coating ratio became indistinct by the powder technological filter effect which occured by the vibration. The structure and the compositional gradient of FGM block were examined by OM, SEM, EPMA, X-ray analyses. And the properties of the FGM block such as density, hardness, heat resistant were measured. The FGMs of the SUS316L/3Y-PSZ system without a visible crack-like discontinuity throughout in the overall cross section were accomplished by the vibrational frequency in 50Hz, amplitude of 0.35-0.5mm and sintered at 1353K for 7.2ks, at the pressure of 19.6MPa in Ar gas atmosphere.