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In this paper, the supersonic flutter behaviors of functionally graded panels are analyzed by using the Differential Transformation Method (DTM). The material properties are assumed to be graded in the thickness direction and the Mori-Tanaka scheme and a simple power-law are used to estimate the effective material properties. The structural formulation is based on Classical Plate Theory (CPT) and the aerodynamic loading is formulated using quasi-steady supersonic piston theory. The governing equations are derived using the Hamilton's principle.