The potential of silicon carbide reinforced Functionally Gradient Material (FGM) to be used as armor material was investigated under the impact of armor piercing projectile. For this purpose, the SiC–Aluminum Alloy (AA) 7075 functionally graded composite at different thicknesses was produced from the metallic and ceramic powders via powder metallurgy method. Before the ballistic testing, the precipitation hardening behavior of the samples was determined. And also, the microstructural characterizations of the samples were done with the aid of microscopy techniques. Next, the FGM samples were tested using armor piercing projectile to analyze their impact behavior. In the produced samples, some pore formation was detected. The ballistic experiments showed that the investigated FGMs (up to a thickness of 25 mm) did not withstand the impact of the projectile. At the tested samples, some major cracks and plug formation were detected at macrolevel while there were some microcracks, deformed and elongated grains in the regions near to the deformation zone of the samples.