In this paper three-dimensional steady-state response of a functionally graded fiber reinforced cylindrical panel are studied. The functionally graded orthotropic panel is simply supported at the edges and assumed to have a linear variation of reinforcement volume fraction in the radial direction. Suitable temperature and displacement functions that identically satisfy the simply supported boundary conditions are used to reduce the thermoelastic equilibrium equations to a set of coupled ordinary differential equations with variable coefficients, which can be solved by differential quadrature method. Results are presented for the fiber reinforced functionally graded cylindrical panel with graded fiber volume fractions and compared with traditional discretely laminated composite panel. Results indicate the advantages of using functionally graded fiber reinforced composite shell with graded fiber volume fractions over traditional discretely laminated composite shells.