Presently, Functionally Graded Materials (FGMs) are extensively utilised in several industrial sectors, and the modelling of their mechanical behaviour is consistently advancing. Most studies investigate the impact of layers on the mechanical characteristics, resulting in a discontinuity in the material. In the present study, the extended Finite Element Method (XFEM) technique is used to analyse the damage in a Metal/Ceramic plate (FGM-Al/SiC) with a circular central notch. The plate is subjected to a uniaxial tensile force. The maximum stress criterion was employed for fracture initiation and the energy criterion for its propagation and evolution. The FGM (Al/SiC) structure is graded based on its thickness using a modified power law. The plastic characteristics of the structure were estimated using the Tamura-Tomota-Ozawa (TTO) model in a user-defined field variables (USDFLD) subroutine. Validation of the numerical model in the form of a stress-strain curve with the findings of the experimental tests was established following a mesh sensitivity investigation and demonstrated good convergence. The influence of the notch dimensions and gradation exponent on the structural response and damage development was also explored. Additionally, force-displacement curves were employed to display the data, highlighting the fracture propagation pattern within the FGM structure.