The p-type Te functional gradient material (FGM) was fabricated by hot-pressing the mechanically alloyed and the 0.5 at% powders. Also, the n-type FGM was processed by hot-pressing the mechanically alloyed and the 0.3 wt% Bi-doped PbTe powders. With larger than , the p-type FGM exhibited larger thermoelectric output power than those of the and the 0.5 at% alloys. For the n-type FGM, the thermoelectric output power superior to those of the and the 0.3 wt% Bi-doped PbTe was predicted at larger than .