In the current study, functionally graded clads (FGC) of Ni-Cr3C2 based composite powders with varying percentage of Cr3C2 (0%–30% by weight) were developed on austenitic stainless steel (SS-304) substrate through microwave hybrid heating method. A domestic microwave oven working at 2.45 GHz and variable power level of 180–900 W was used to conduct the experimental trials. The exposure time was varied with compositional gradient and was optimized. Scanning electron microscopic (SEM) image of the FGC shows the uniform distribution of Cr3C2 particles inside the Ni matrix. Presence of Ni3C, Ni3Si, Ni3Cr2, and Cr3C2 phases was observed in the different layers of FGC. The top FGC layer exhibits the maximum value of microhardness of order 576 ± 25 HV which was 2.5 times more than that of the substrate.