Micro- and nanoindentation were used to determine hardness as a function of depth in two functionally graded WC-Co composites. The gradients were continuous (extended over ~70 and ~40 μm, respectively) and consisted of varying WC and Co phase volume fractions. Five comparable homogeneous samples with different Co contents and different average WC grain sizes were also used for direct comparison. A relationship between hardness and Co content was established for both the graded and the homogeneous samples wherein the hardness decreased with increasing Co content. The magnitude of the hardness was the same (for a given Co content) for the functionally graded and the homogeneous materials. The hardness measurements were also correlated with X-ray diffraction studies of thermal residual stresses and the absence of any major influence explained. It is generally concluded that the hardness values are dominated by the local Co content. Additionally, the examination of surface cracks around indents suggests that compositional gradients in WC-Co composites offer increased toughness