Limit elastic speed analysis of Al/SiC-based functionally graded annular disk of uniform thickness has been carried out for two cases, namely: metal-rich and ceramic rich. In the present study, the unknown field variable for radial displacement is solved using variational method wherein the solution was obtained by Galerkin's error minimization principle. One of the objectives was to identify the variation of induced stress in a functionally graded disk of uniform thickness at limit elastic speed using modified rule of mixture by comparing the induced von-Mises stress with the yield stress along the disk radius, thereby locating the yield initiation. Furthermore, limit elastic speed has been reported for a combination of varying grading index (n) and aspect ratios (a/b).Results indicate, limit elastic speed increases with an increase in grading indices. In case of an increase in aspect ratio, limit elastic speed increases up to a critical value beyond which it recedes. Also, the objective was to look at the variation of yield stress corresponding to volume fraction variation within the disk which later helps in material tailoring. The study reveals the qualitative variation of yield stress for FG disk with volume fraction, resulting in the possibility of material tailoring from the processing standpoint, in practice.