Nowadays functionally graded materials have found growing applications in different areas, such as heat shield, gas turbine cover in order to reduce slate, heat cover in gas motors, components of heat exchangers, plasma cover in nuclear components, etc. This is mainly due to heterogeneous structure and gradual continuous variation of these materials. In this thesis, thermo-elastic deformation of a hollow thick-walled cylinder made of functionally graded materials, subjected to one dimensional axisymmetric mechanical and thermal loads is analytically studied. The analysis is based on small-strain theory in plane-strain state. The mechanical and thermal properties of the cylinder are assumed to be temperature dependent. Power-law functions of radial coordinate are used to represent the spatial variation of Young modulus, density, thermal conduction coefficient and thermal expansion coefficient. But the poisson’s ratio is assumed to be constant. The temperature distribution is determined by solving the heat conduction equation in the steady-state condition. Given temperatures in inner and outer surfaces of cylinder are used as boundary conditions for the heat conduction equation. Then the temperature field, obtained from heat conduction, is substituted in navier equilibrium equation. The numerical results are presented for a special ceramic-metal FG cylinder. Some results for the strain, stress and displacement components are presented for the case of uniform internal and external pressures and temperature gradient. The results show that ignoring the temperature dependency of material properties caused up to 80% error in the thermo-elastic solution results. This clearly shows that, for reliable solutions to be obtained for thermo-elastic behavior, the temperature dependency of Young modulus, density, thermal conduction coefficient and thermal expansion coefficient must be taken into account. To best knowledge of author, the effect of temperature dependency of material properties for a hollow FG cylinder, were not taken into considerations in the previously published researches. Keywords: Functionally graded material, Hollow thick-walled cylinder, Thermo-elastic analysis, Axisymmetric loading, Temperature-dependent material properties.