In this paper, three-dimensional elastic deformation of rectangular sandwich panels with functionally graded transversely isotropic core subjected to transverse loading is investigated. An exponential variation of Young’s and shear moduli through the thickness is assumed. The approach uses displacement potential functions for transversely isotropic graded media and a three-dimensional elasticity solution for a transversely isotropic graded plate developed by the authors. The effects of transverse shear modulus, loading localisation, panel thickness and anisotropy on the stresses and displacements in the panel are examined and discussed.