The mechanical integrity and reliability of coated devices are strongly affected by the residual stresses in thin films and coatings. However, due to the metallurgical complexity of materials, it is rather difficult to obtain a closed-form solution of residual stresses within multilayered coatings (e.g. functionally graded coatings, FGCs). In this paper, an analytical model is developed to predict the distribution of residual stresses within multilayered coatings. The advantage of this model is that the solution of residual stresses is independent of the number of layers. Specific results are obtained by calculating elastic thermal stresses in ZrO2/NiCoCrAIY FGCs, which consist of different material layers. Furthermore, the residual stress distribution near the edges and the stress-induced failure modes of coating are also analyzed. The topics discussed provide some insights into the development of a methodology for designing fail-safe coating systems. The mechanical integrity and reliability of coated devices are strongly affected by the residual stresses in thin films and coatings. However, due to the metallurgical complexity of materials, it is rather difficult to obtain a closed-form solution of residual stresses within multilayered coatings (eg functionally graded coatings, FGCs). In this paper, an analytical model is developed to predict the distribution of residual stresses within multilayered coatings. The advantage of this model is that the solution of residual stresses is independent of the number of layers. Specific results are obtained by calculating elastic thermal stresses in ZrO2 / NiCoCrAIY FGCs, which consist of different material layers. Furthermore, the residual stress distribution near the edges and the stress-induced failure modes of coating are also analyzed. of a methodology for designing fail-safe coating systems.