The current study is focused on the successful fabrication and characterization of microstructure and properties gradient composite made of 3 mm thick sheets of AA5083-O, AA6061-T6, and AA7075-T6 alloys using friction stir additive manufacturing (FSAM) technique. Two combinations of four layered FSAM builds (6756 and 7567) were fabricated successfully without any major defects at the optimized process parameters of 850 rpm (tool rotational speed) and 55 mm/min (tool transverse speed). The material mixing, interfacial bonding features, microstructure evolution, and mechanical performance within the stir zones (SZ) were thoroughly examined using advanced characterization techniques. Electron backscatter diffraction (EBSD) analysis confirmed a gradient microstructure along the build depth in both FSAM builds, with average grain sizes decreasing from 52 μm (AA5083), 46 μm (AA6061), and 40 μm (AA7075) in base metals to ∼ 4–7 μm within the SZ. The remarkable grain refinement within the SZ was mainly attributed to the dominant presence of the continuous dynamic recrystallization (CDRX) mechanism. Texture analysis corresponding to pole figures (PFs) and orientation distribution function (ODF) plots reveals the crystallographic texture evolution along the build depth. The prevalent existence of B/ B‾ and C textures throughout all regions of the FSAM builds affirms the presence of ample shear strain during the FSAM procedure. Through thickness miniature tensile and microhardness tests depict the gradient in mechanical performance for both the FSAM builds along the build depth. Microhardness gradients in the range from ∼ 80 HV0.1 to ∼ 145 HV0.1 were observed along the build depth. The axial sample in the build direction shows appreciable strength (265 MPa and 224 MPa) and uniform elongation (28 % and 24 %) for 6756 and 7567 FSAM build, respectively. Furthermore, remarkable strain hardening behaviour corresponding to hardening capacity (Hc) and hardening exponent (n) was noticed for both the axial build samples compared to AA6061-T6 and AA7075-T6 base metals. These findings underscore the potential of FSAM in fabricating functionally gradient composite materials tailored to specific functional requirements. Display omitted •The FSAM technique has been used to fabricate two combination of defect-free FGCM using AA5083-O/AA6061-T6/AA7075-T6 alloys.•Fine-grained microstructure with appreciable material mixing at the interfacial region is noticed within the stir zones.•Tensile properties in the build direction shows remarkable strength and ductility with appreciable strain-hardening behavior.•The dominant presence of recrystallization textures within the SZ confirms the prominent presence of the CDRX mechanism.•The findings underscore the potential of FSAM in fabricating functionally gradient composite materials for specific functional requirements.