The thermo-elastic analysis of thermally induced crack in functionally graded materials (FGMs) is performed using extended isogeometric analysis (XIGA). For the study, two types of cracks, i.e., adiabatic and isothermal, are considered in the FGM body. The suitable enrichment functions are employed to capture the discontinuity (i. e., displacements and temperature) along the crack face and singular fields around the crack tip. The material property gradation in FGM (composed of aluminum and ceramic) is assumed to be governed by the exponential law. The domain-based interaction integral approach evaluates the stress intensity factors (SIFs) at the crack tips. Several numerical experiments are performed to verify the accuracy of XIGA for the FGM body under the action of the thermo-elastic load. Further, the effect of defects (i.e., voids and inclusions) is examined on the SIFs of the FGM body. Moreover, the impact of different material properties of inclusion on the SIFs is also investigated.