Centrifugal casting process was applied for fabricating the functionally graded Aluminium/10% AlB₂ composite under the centrifuging speed of 1200 rpm and hollow cylindrical (150 × 150 × 15 mm) component has been obtained. The outer, middle and inner surfaces of the FGM those were at the distance of 1 mm, 8 mm and 15 mm from the outer periphery were taken for three body abrasive wear test and the applied load was varied (33 N to 80 N) on these surfaces in the presence of silica sand and alumina as abrasive mediums. The wear test results showed that increase in load and increase in distance from the outer periphery of the FGM increases the wear rate. The surfaces of the FGM abraded with silica sand displays higher wear rate than the surfaces abraded through alumina. SEM analysis has been performed on the surfaces abraded by both medium and it was observed that severity of wear was less in the presence of alumina as abrasive medium during the abrasion test.