Functionally graded materials are innovative materials in which the composition of the microstructural elements varies gradually in different directions, instigating changes in properties that can be exploited for enrichment in the performance of the hydrogels based on the application. The present study involves the development of functionally graded hydrogel (FGH) for the soft tissues of the diarthrodial joints. FGH is prepared from gelatine, guar gum, polyvinyl alcohol, and copper nanoparticles. The compressive behavior of the FGH composite hydrogels was evaluated under the compressive loads. The mean compressive strength of the FGH was found to be 378 kPa. The rate-dependent hyperplastic mechanical behavior of FGH was modeled under compressive conditions by combining the block represents the influence of the strain rate effect in the J-C model with the Mooney-Rivlin constitutive model. The hybrid model's predictability was satisfactory, with a mean absolute error of 10.88 kPa. Furthermore, swelling and biocompatibility properties of hydrogel were assessed. The developed FGH exhibited adequate mechanical and biocompatibility properties and was a promising material for repairing and regenerating soft tissues in the diarthrodial joints.