Displacement and stress fields in a functionally graded (FG) fiber-reinforced rotating disk of nonuniform thickness subjected to angular deceleration are obtained. The disk has a central hole, which is assumed to be mounted on a rotating shaft. Unidirectional fibers are considered to be circumferentially distributed within the disk with a variable volume fraction along the radius. The governing equations for displacement and stress fields are derived and solved using finite difference method. The results show that for disks with fiber rich at the outer radius, the displacement field is lower in radial direction but higher in circumferential direction compared to the disk with the fiber rich at the inner radius. The circumferential stress value at the outer radius is substantially higher for disk with fiber rich at the outer radius compared to the disk with the fiber rich at the inner radius. It is also observed a considerable amount of compressive stress developed in the radial direction in a region close to the outer radius. These compressive stresses may prevent any crack growth in the circumferential direction of such disks. For disks with fiber rich at the inner radius, the presence of fibers results in minimal changes in the displacement and stress fields when compared to a homogenous disk made from the matrix material. In addition, we concluded that disk deceleration has no effect on the radial and hoop stresses. However, deceleration will affect the shear stress. Tsai–Wu failure criterion is evaluated for decelerating disks. For disks with fiber rich at the inner radius, the failure is initiated between inner and outer radii. However, for disks with fiber rich at the outer radius, the failure location depends on the fiber distribution.