Additive manufacturing is a one of the most promising technology nowadays that offers the advantages not only in building products of complex shapes but also of complex materials. A complex structure is characteristic for Functionally Graded Composites, which basics, principles and applicability have been widely investigated over the last years. The present study is focused on the detailed investigation of mechanical and structural properties of FGC consisting of stainless steel 316L and Inconel 718 processed by Blown Powder Directed Energy Deposition system. Mechanical properties within single layers and over layers transitions were investigated with the use of tensile tests and fracture toughness tests. Metallographic and fractographic investigations were carried out. Metallographic investigation revealed the differences in the interfaces between single material layers, nucleation processes and subsequent growth of the grains of the used materials. It has been shown that the formation of transition region between deposited single material layers is dependent on the order of material deposition since different deposition parameters are used for certain material. Evaluation of the tensile properties showed that the mechanical properties of a single material layers are in very good agreement regardless of the deposition height. However, the types of interfaces considering to the results of fractographic observations affect the tensile performance of the Functionally Graded Composite. The fracture toughness test results demonstrate changes in the mechanism of crack propagation at the interface between materials with respect to the type of transition. Furthermore, the material layers interfaces turned out to be the weakest points of the Functionally Graded Composite. •A great continuation of the Inconel's grains is observed when deposited on 316 L.•316 L grains show rare crystallographic traceability when deposited on the IN718.•Tensile properties are in very good agreement regardless of the deposition height.•Material layers interfaces are the weakest points of the functionally graded material.•The crack propagation mechanism in FGC is dependent on interface type.