In this paper, we use the asymptotic perturbation method to investigate the nonlinear oscillation and chaotic dynamic behavior of a simply supported rectangular plate made of functionally graded materials (FGMs). We assume that the plate is made from a mixture of ceramics and metals with continuously varying compositional profile such that the top surface of the plate is ceramic rich, whereas the bottom surface is metal rich. The equations motion of the FGM plate with two-degree-of-freedom under combined parametrical and external excitations are obtained by using Galerkin’s method. Based on the averaged equation obtained by the asymptotic perturbation method, the phase portrait and waveform are used to analyze the periodic and chaotic motions. It is found that the FGM plate exhibits chaotic motions under certain circumstances.