Ti-Ni based functionally graded alloy is a kind of the promising material, which has potential to be used in aero engines. Using laser rapid forming, a Ti-Ni graded alloy with a continuous compositional gradient from pure Ti to Ti-50wt.%Ni were fabricated. On comparison with the graded alloy, a series of homogenous deposits with the typical composition between pure Ti to Ti-50wt.%Ni were also laser rapid formed. The phase evolution along the compositional gradient direction in the graded alloy is: α+β→β+Ti2Ni →(TiNi +Ti2Ni)+ TiNi; and the phase evolution in the corresponding compositional homogeneous deposit is: α+β→ β+(β+Ti2Ni)→ β+Ti2Ni+(β+Ti2Ni)→ (TiNi+Ti2Ni)+TiNi. The phase transformation and microstructural evolution along the compositional gradient were analyzed by using the microstructure selection map.