Functionally graded materials (FGMs) are composite materials which vary in phase composition, microstructure and properties over one or more dimensions. They are a good potential choice for nuclear reactor components as they can be engineered to effectively resist corrosion and radiation damage. In the case of a metal-ceramic FGM, they can mate the strength and ductility of a metal with the hardness and toughness of a ceramic. A series of composite samples of variable metal-ceramic ratios was manufactured by hot uniaxial pressing in cylinders. Bulk uniform samples of a certain composition were manufactured as a more efficient way of studying FGMs without the extreme gradient required in practical applications. Thermally and mechanically generated stresses, inherent in composites, frequently create conditions for micro-cracking development, depending on the material's micro-structural characteristics and the thermo-mechanical processing route. Bulk stress measurements in the prepared samples were carried out on the Kowari diffractometer on the OPAL reactor at ANSTO. Both phases - metal matrix and ceramic inclusions - were measured in both axial and lateral directions for full characterisation of the composite stress state. When compared against analytical evaluation, experimental results, for some samples, demonstrated significant stress relaxation with micro-cracking being the main suspect.