Summary: Based on the basic equations for axisymmetric problems of transversely isotropic elastic materials, the displacement components are expressed in terms of polynomials of the radial coordinate with the five involved coefficients, named as displacement functions in this paper, being undetermined functions of the axial (thickness) coordinate. Five equations governing the displacement functions are then derived. It is shown that the displacement functions can be found through progressive integration by incorporating the boundary conditions. Thus a three-dimensional analytical solution is obtained for a transversely isotropic functionally graded disc rotating at a constant angular velocity.The solution can be degenerated into that for an isotropic functionally graded rotating disc. A prominent feature of this solution is that the material properties can be arbitrary functions of the axial coordinate. Thus, the solution for a homogeneous transversely isotropic rotating disc is just a special case that can be easily derived. An example is finally considered for a special functionally graded material, and numerical results shows that the material inhomogeneity has a remarkable effect on the elastic field.