The objective of this study is to determine stress intensity factors (SIFs) for a crack in a functionally graded layer bonded to a homogeneous substrate. Functionally graded coating contains an edge crack perpendicular to the interface. It is assumed that plane strain conditions prevail and the crack is subjected to mode I loading. By introducing an elastic foundation underneath the homogeneous layer, the plane strain problem under consideration is used as an approximate model for an FGM coating with radial grading on a thin walled cylinder. The plane elasticity problem is reduced to the solution of a singular integral equation. Constant strain loading is considered. Stress intensity factors are obtained as a function of crack length, strip thicknesses, foundation modulus, and inhomogeneity parameter.