Functionally graded nickel-aluminide and iron-aluminide in the form of superimposed clad layers up to ∼ 4 mm total thickness were produced on nickel and on iron based substrates, respectively. A continuous wave carbon dioxide laser and two separate powder feeders were employed. The processing parameters were: 1.8 kW laser power, 3 mm beam diameter, and 7 mm s−1 traverse speed. A series of single clad layers with various Al contents were first produced in order to obtain fundamental data required for the processing of functionally graded materials. Functionally graded Ni-Al and Fe-Al coatings (up to three layers) were produced by successive deposition of clad layers normal to the substrate surface.