Temperature-dependent stress analysis and heat transfer analysis of a rotating gas turbine blade made of functionally graded materials (FGMs) are presented considering turbine operating temperature and ceramic particle size. The material properties of functionally graded materials are assumed to vary continuously and smoothly across the thickness of the thin-walled blade. For obtaining system stiffness reflecting these characteristics, the one-dimensional heat transfer equation is applied along the thickness of the thin-walled blade for determining the temperature distribution. Using the results of the temperature analysis, the equations of motion of a rotating blade are derived with hybrid deformation variable modeling method along with the Rayleigh-Ritz assumed mode methods. The validity of the derived rotating blade model is evaluated by comparing its transient responses and temperature distribution with the results obtained using a commercial finite element code. The maximum tensile stress with operating speed and gradient index are obtained. Furthermore, the gradient index that minimizes blade temperature was investigated.