Functionally graded materials (FGM) possess a gradual transition in the composition or microstructure within a component inducing gradual changes in the functions and properties of the material with varying location. The present investigation is to form functionally graded aluminum composites with varying microstructural features and properties gradation using centrifugal casting by varying the material and process parameters. The ex-situ Al-SiC FGM has shown graded distribution of SiC towards the outer periphery and Al-SiC-Graphite has shown both particle gradations of SiC and Graphite towards inner periphery due to hindered settling phenomena. In in-situ Al-Si and Al-Si-Mg2Si system the particles are distributed towards the inner periphery of the casting. The paper also emphasizes on selected engineering components and tailoring their graded structures and properties by utilization of suitable reinforcement combinations and process parameters are discussed.