The torsional behavior of beams graded in one and two directions under large displacements and angular deformations was analyzed using the power law and sinusoidal functions. Functionally graded material is elastoplastic, consisting of ceramic and metal. A nonlinear finite element method with isoparametric hexahedral elements was used. The finite element formulation was made using the updated Lagrangian formulation based on the virtual displacement principle. An iterative solution using Newton-Raphson and updated Newton-Raphson methods was used to solve the nonlinear equation system. The propagation of the plastic zone was calculated based on the flow theory of plasticity. Elastoplastic behavior and effective material properties were determined according to the TTO model. Numerical investigations have shown that functionally graded beams behave quite differently from homogeneous beams under torsion. Yielding of the material starts at the outer boundaries of the section of the homogeneous beams, and the plastic zone propagates symmetrically. On the other hand, yielding and propagation of plastic zones tend to shift to regions with more ceramic volume with higher effective Young modulus in functionally graded beams. Unlike homogeneous beams, the largest shear stresses can occur within the section rather than at the outer boundaries of the section. In beams graded from ceramic to metal using the power law, the section moves along the transverse direction in addition to the rotation. This transverse displacement occurs in the grading direction, and its magnitude is about 3% of the thickness at 12.5° rotation angle. Also, the shear stresses are not zero in the section's midpoint. The effects of material distribution on displacements, stresses, and plastic zone propagation were examined, and essential points were reported.