Nonlinear transient heat transfer and thermoelastic stress analyses of a thick-walled FGM cylinder with temperature-dependent materials are performed by using the Hermitian transfinite element method. Temperature-dependency of the material properties has not been taken into account in transient thermoelastic analysis, so far. Due to the mentioned dependency, the resulting governing FEM equations of transient heat transfer are highly nonlinear. Furthermore, in all finite element analysis performed so far in the field, Lagrangian elements have been used. To avoid an artificial local heat source at the mutual boundaries of the elements, Hermitian elements are used instead in the present research. Another novelty of the present paper is simultaneous use of the transfinite element method and updating technique. Time variations of the temperature, displacements, and stresses are obtained through a numerical Laplace inversion. Finally, results obtained considering the temperature-dependency of the material properties are compared with those derived based on temperature independency assumption. Furthermore, the temperature distribution and the radial and circumferential stresses are investigated versus time, geometrical parameters and index of power law. Results reveal that the temperature-dependency effect is significant.