In the case of using high temperature by coating ceramic/metal, large stress was produced due to difference of thermal expansion coefficient between those. And then lead to delamination. In order to relaxation of the stress A1$_2$O$_3$/SS316 composite powders with $10wt.%Al_2O_3$ compositional gradient and $10wt.%Al_2O_3$ agglomerated powder were made by spray drying method. These powders were sintered to improve the strength and to be plasma sprayed in order to fabricate the FGC(functionally graded coating). The influence of gun power, working distance and Ar pressure on the microstructure of the coating layer was studied in order to optimize the plasma spray conditions. It was proven that the optimum conditions were 40kw gun power, 5cm working distance and $100ft^3/h$ Ar flow for both powders. FGC with 10 compositional steps was fabricated and the total thickness was 1.3mm. FGC was heat treated at $1100^{circ}C$for 10hours to evaluate the heat resisting characteristics.