A 3D graded coating/substrate model based on multigrid techniques within a finite difference frame work is presented. Localized refinement is implemented to optimize memory requirement and computing time. Validation of the solver is performed through a comparison with analytical results for (i) a homogeneous material and (ii) a graded material. The algorithm performance is analyzed through a parametric study describing the influence of layer thickness (0.01 < t/a < 10) and mechanical properties (0.005 < Ec /Es < 10) of the coating on the contact parameters (Ph , a). Three-dimensional examples are then presented to illustrate the efficiency and the large range of possibilities of the model. The influence of different gradations of Young’s modulus, constant, linear and sinusoidal, through the coating thickness on the maximum tensile stress is analyzed, showing that the sinusoidal gradation best accommodates the property mismatch of two successive layers. A final case is designed to show that full 3D spatial property variations can be accounted for. Two spherical inclusions of different size made from elastic solids with Young’s modulus and Poisson’s ratio are embedded within an elastically mismatched finite domain and the stress field is computed.