In this study, the continuous and discontinuous contact problems of functionally graded (FG) layer resting on a rigid foundation were considered. The top of the FG layer was loaded by a distributed load. It was assumed that the shear modulus and the density of the layer varied according to exponential functions along the depth whereas the the Poisson ratio remained constant. The problem first was solved analytically and the results were verified with the ones obtained from finite element (FE) solution. In analytical solution, the stress and displacement components for FG layer were obtained by the help of Fourier integral transform. Critical load expression and integral equation for continuous and discontinuous contact, respectively, using corresponding boundary conditions in each case. The finite element solution of the problem was carried out using ANSYS software program. In continuous contact case, initial separation distance and contact stresses along the contact surface between the FG layer and the rigid foundation were examined. Separation distances and contact stresses were obtained in case of discontinuous contact. The effect of material properties and loading were investigated using both analytical and FE solutions. It was shown that obtained results were compatible with each other.