The methods of MSD are applied to the design of functionally graded materials. Analysis models are presented to allow the design of compliant derailleur for a case study and constraints are placed on the design. Several methods are presented for relating elements of the microstructure to the properties of the material, including Taylor yield theory, Hill elastic bounds, and precipitation hardening. Applying n-point statistics to the MSD framework is also discussed. Some results are presented for the information content of the 2-point correlation statistics that follow from the methods used to integrate functionally graded materials into MSD. For the compliant beam case study, the best design (98%Al-2%Li) was a 97% improvement over the worst (100%Al). The improvements were primarily due to the precipitation hardening, although anisotropy also significantly impacted the design. Under the constraints for the design, allowing the beam to be functionally graded had little effect on the overall design, unless there was significant stiffening occurring along with particulate formation.