Journal bearings are graded systems with a metal-metal composite as the functional layer. Estimation of the microscale stress distributions is used to analyse the interaction between microstructure, material properties and damage mechanisms during wear. The analysis is executed by means of simple plane-strain finite element models mimicking experimentally observed microstructures. It is found that under realistic macrosstress conditions no tensile microstresses are induced in the triboalloy and that plastic flow is inhibited by the graded structure.