A new multi-layered model has been developed for dynamic fracture analysis of functionally graded materials (FGMs) whose properties may vary arbitrarily in its thickness direction. In this model, the FGM is divided into several sub-layers. The proper-ties of the material are assumed to vary linearly along its thickness direction in each layer and continuous at the interfaces. The problem of a crack subjected to a harmonic anti-plane shear load in a graded coating bonded to a homogeneous half plane is then investigated by using the new model. Employment of the transfer matrix method and Fourier integral transform technique reduces the problem to a Cauchy type singular integral equation which is solved numerically. Dynamic stress intensity factors (DSIFs) are presented. Results show that the new model is very efficient.