Composite materials fail under extreme working conditions, particularly at high temperature, due to delamination (separation of fibers from matrix). And therefore it is needed to switch over functionally graded materials (FGMs) which can sustain at high temperature conditions (250-2000 degrees C). There is a need to analyze the fracture and fatigue characteristics of FGM structures and so through this review the emphasis is given on fracture analysis of FGM materials. It has been reported that a combination of extended finite element method and isogeometric analysis methodologies has been used for general mixed-mode crack propagation problems after the introduction of extended isogeometric analysis. Furthermore, recent computational advances have been in the form of multiscale simulations where the part of model is simulated by a finer modeling scale, which can represent details of the material behavior and the interacting effects of material constituents in the finest way. The review is also focused on new advances in analytical and numerical methods for the stress, vibration, and buckling analyses of FGMs. Emphasis has been primarily on to restrict 2D analysis with sorts of compromise in the accuracy of results. First shear deformation theory (FSDT) and third-order shear deformation theory have been extensively used among the various 2D plate theories. FSDT can help us in terms of getting reasonably accurate results with less computational afford. This paper also outlines review on carbon nanotubes (CNT) reinforced FGMs, functionally graded nanocomposites, functionally graded single-walled CNT, FG nanobeam as well as functionally graded piezoelectric materials. Future applications would be based on these smart materials which are supposed to serve us in adverse conditions. Of course, with rise and advent of promising nanotechnology and its potential impact on aerospace industry as well as on other areas, it becomes important to us to compile this review article.