This paper studies the dynamic response of functionally graded beams with an open edge crack resting on an elastic foundation subjected to a transverse load moving at a constant speed. It is assumed that the material properties follow an exponential variation through the thickness direction. Theoretical formulations are based on Timoshenko beam theory to account for the transverse shear deformation. The cracked beam is modeled as an assembly of two sub-beams connected through a linear rotational spring. The governing equations of motion are derived by using Hamilton's principle and transformed into a set of dynamic equations through Galerkin's procedure. The natural frequencies and dynamic response with different end supports are obtained. Numerical results are presented to investigate the influences of crack location, crack depth, material property gradient, slenderness ratio, foundation stiffness parameters, velocity of the moving load and boundary conditions on both free vibration and dynamic response of cracked functionally graded beams. © 2011 Elsevier Ltd.