A new functionally graded coating method utilizing reaction diffusion and eutectic reaction has been developed. A Ti/Ti₃Sn functionally graded material (FGM) has been successfully made using this method; a Ti plate or a round bar is at first covered by Ti-31 at%Sn powder, then heated up to 1888 K by 8.5 K/min and finally cooled by 5.0 K/min. This simple method has enabled us to obtain structurally sound FGMs, which show neither cracks nor detectable microstructure change after thermal cycle testing between room temperature and 1273 K. The microstructure is well graded and the surface completely consists of Ti₃Sn, which has never been obtained by a eutectic coating method. The formation mechanism of such a graded microstructure is discussed.