The effect of functional graded piezoelectric materials on the propagation of thickness-twist waves is investigated through equations of the linear theory of piezoelectricity. The elastic and piezoelectric coefficients, dielectric permittivity, and mass density are assumed to change in a linear form but with different graded parameters along the wave propagation direction. We employ the power-series technique to solve the governing differential equations with variable coefficients attributed to the different graded parameters and prove the correction and convergence of this method. As a special case, the functional graded middle layer resulting from piezoelectric damage and material bonding is investigated. Piezoelectric damaged material can facilitate energy trapping, which is impossible in perfect materials. The increase in the damaged length and the reduction in the piezoelectric coefficient decrease the resonance frequency but increase the number of modes. Higher modes of thickness-twist waves appear periodically along the damaged length. Moreover, the displacement of the center of the damaged portion is neither symmetric nor anti-symmetric, unlike the non-graded plate. The conclusions are theoretically and practically significant for wave devices.