Ceramics and metals are the two vastly explored classes of materials whose individual characteristics and targeted applications differ significantly. Continuous thrust for space exploration and energy generation demands materials with a wide range of properties. To tackle this demand, ceramic-metal combined structures that club heat, wear, and corrosion resistance of ceramics to the high toughness, good strength, and better machinability of metals are desirable. While various processing routes to combine ceramics and metals have been developed through the years, solutions to address problems associated with the interface, thermal property mismatch, and poor adhesion need to be explored. In this context, Functional Graded Materials (FGMs) have attracted particular attention by virtue of their ability to avoid sharp interfaces and local stress concentrations. Out of all, Additive Manufacturing (AM) routes, particularly the Directed Energy Deposition (DED) technique, is emerging as a productive technique capable of fabricating a wide range of metal-ceramic graded structures. This paper specifically discusses metal-ceramic FGMs ́ capability as a potential high-temperature material with customized multifunctional material properties. It further outlines the primary concerns with the realization of metal-ceramic graded structures and major techniques developed to mitigate problems encountered in processing them. Specific emphasis is laid on the powder-based Laser DED (L-DED) technique of FGM fabrication owing to its control over complex geometries and microstructural engineering.