Functionally graded material (FGM) is a novel concept in material design to combat challenges posed by harsh and conflicting operational requirements. There is a great demand for manufacturing technologies that can fabricate net-shape components incorporating the FGM design concepts. The focus of this paper is on the development of complex components incorporating functionally gradient material designs. This novel manufacturing scheme combines the use of re-useable mandrels to generate complex shapes with a unique thermal spray process called “hybrid spray” that can deposit functionally designed materials. This generic hybrid spray process combines arc spraying with either high velocity oxy-fuel (HOVF) or plasma spraying (APS). The resulting benefits are; ability to achieve continuous composition variation, high deposition rates combined with the high coating densities. The multi-material component designs aim to provide cost as well as performance advantages. The geometric resolution and dimensional accuracy of these functional components are presented. This paper also reports results on extensive material compatibility and process parameter development tests. Functional properties such as high temperature resistance, thermal fatigue and impact performance are also presented.