Secondary buckling behavior of functionally graded thin strips subjected to biaxial compression is studied. Young's modulus and shear modulus of elasticity of the strip are dependent on the coordinate variable in the thickness direction of the strip. First we briefly present the governing equations of functionally graded thin strips. Next we make the postbuckling analysis and derive the exact deflection and stress function in Euler buckling state. These solutions allow us to analyze secondary buckling phenomena. Finally, we study the secondary buckling behavior by use of the Galerkin method. Effects of the inhomogeneity of elastic moduli on the secondary buckling behavior of the strips are discussed.