Functionally graded carbon nanotube (CNT)-reinforced aluminum (Al) matrix composites have been successfully fabricated by a powder metallurgy route. The gradient layers containing different amounts of CNT additions showed different microstructures and hardness. Each layer demonstrated good adhesion, with no serious pores or microcracks. We controlled the characteristics of the bulk composite by the efficient design of each CNT gradient layer. The functionally graded material concept offers a feasible approach to fabricating Al-CNT nanocomposites.