ZrO2-Cu films have been prepared as functionally gradient materials (FGM) which change continuously from Cu to ZrO2. Partially stabilized ZrO2 (PSZ) and the PSZ-Cu FGM films were prepared on a Cu substrate by a dynamic ion mixing process. Oxygen ion irradiation was essential for the FGM formation of the PSZ-Cu films, because films deposited without oxygen ion irradiation were easily peeled from the substrate during the deposition steps. The electron beam deposition rates of Cu and ZrO2 were individually controlled. The FGM structures were analysed by X-ray photoelectron spectroscopy and transmission electron microscopy. Cu and PSZ crystal grains were finely mixed in the FGM layers. The thermal resistance of the FGMs was examined by a heat test in which the film surface was heated by an Ar + H-2 plasma jet. No cracks were observed on the PSZ-Cu FGM surfaces after the test. However, for PSZ film (without the FGM layer) on the Cu substrate, cracks were seen.