In this paper, an adaptive phase-field scaled boundary finite element method for fracture in functionally graded material (FGM) is presented. The model accounts for spatial variation in the material and fracture properties. The quadtree decomposition is adopted for refinement, and the refinement is based on an error indicator evaluated directly from the solutions of the scaled boundary finite element method. This combination makes it a suitable choice to study fracture using the phase field method, as it reduces the mesh burden. A few standard benchmark numerical examples are solved to demonstrate the improvement in computational efficiency in terms of the number of degrees of freedom. © 2021 World Scientific Publishing Company.