Functionally graded materials (FGMs) were prepared by construction based layering method through dispersion of carbon nanoparticles in the styrene butadiene rubber matrix. The gradation of material property i.e., 'glass transition temperature' was brought in the nanocomposite by varying the concentration of process oil. Glass transition temperature (Tg) of FGMs was varied from - 56 to - 80 °C along the span of 3 mm thick sheet. The gradation of oil in FGMs also changes other properties like tensile strength, elongation at break, modulus, etc. Tensile strength and modulus at 100% drops down while elongation at break continuously increases while moving from one end to other end along the sheet thickness. Thermal analysis of FGMs verifies the compositional changes as well as the change in Tg along the thickness. © 2008 Elsevier B.V. All rights reserved.