A functionally graded friction material 18 having improved wear resistance and thermal conductivity with fibers 10 and heat conducting elements 12 disposed in an arrangement that conducts heat away from a first surface 20 to a second surface 22. Preferably, the heat conducting elements 12 are copper, copper alloy, filaments, threads, or wire situated substantially perpendicular to the engaging surface and extending to the non-engaging surface 22.