In this study, the vibration characteristics of a functionally graded rotating hollow disk with the circumferential surface crack are investigated. In order to simplify the problem, the circumferential crack of the rotating hollow disk is modeled as circumferential step indentation. The Galerkin Method is used to obtain the radial and hoop stresses for disks with clamped edge at the inner radius. Finite Difference scheme is adopted to solve the partial differential equation of motion of the rotating hollow disk to obtain the mode shapes and the Campbell Diagram. The first critical speed, which is one of the important parameters limiting the performance of the rotating disk, was obtained from the Campbell Diagram. The results show that the crack will reduce the stiffness and the critical speed of the rotating disk. Critical speed increases with decreasing the distance from inner radius to the crack and decreases with increasing crack depth. Furthermore, considering the functionally graded disk, the distribution of elastic modulus does not change significantly the effects of circumferential cracks on the vibration characteristics of the rotating.