In this work, the effects of post weld heat treatment (PWHT) on the microstructure and mechanical properties of functionally gradient materials (FGM) was investigated. The FGM consisted of five different layers which were mixtures of austenitic stainless steel (type 316L) and ferritic steel (LAS). The ratio of type 316L and LAS powder in each deposition layer was 100:0, 75:25, 50:50, 25:75, and 0:100. FGM samples were successfully fabricated without cracks or delamination by a direct energy deposition process. The sensitization phenomenon of the FGM samples was investigated after PWHT. The PWHTs were conducted at 700℃, 900℃, and 1100℃ for 4 hours and the samples were then air-cooled. After PWHT, the annealed specimens were observed by optical and scanning electron microscopy to analyze their microstructure. The occurrence of sensitization was found in the specimen annealed at 700℃. The contents of Cr and C increased substantially along grain boundaries. However, the sensitization did not occur in other samples annealed at 900℃ and 1100℃. In the C and D layers of the 1100℃ annealed sample, micro-hardness was measured to be very high due to the formation of bainitic ferrite and a lath martensite structure. In addition, a reduction of the austenite fraction was confirmed by Electron Back Scatter Diffraction. (Received September 25, 2020; Accepted November 24, 2020)