In this paper, the thermo-elastic fracture problems of functionally graded materials (FGMs) are thoroughly investigated based on a modified phase field model. In this model, the material constants and fracture toughness vary along a specified direction, the thermal conductivity and stiffness constants in the damaged regions are degraded by the phase-field variable, and the crack evolution is driven by the variation of elastic energy induced by the thermo-mechanical loading. Therefore, the temperature, mechanical and damage fields are coupled with each other. The validation of the present approach has been checked by comparing the present results with the analytical, numerical, and experimental results in literature. The examples of thermo-elastic tensile fracture and thermal shock cracking of FGMs are performed to investigate the influence of material heterogeneity and external thermal loading. Furthermore, the experimental phenomenon of crack deflection in FGMs has been captured by the present simulations. The present study provides a guidance for understanding the fracture mechanism, material design and safety assessment of FGM structures in engineering practice.