Based on the nonlocal Timoshenko beam theory, the dynamic stability of functionally gradded (FG) nanoeams under axial load is studied in thermal environment, with considering surface effect. It is used power law distribution for FGM and the surface stress effects are considered based on Gurtin-Murdoch continuum theory. Using Von Karman geometric nonlinearity, governing equations are derived based on Hamilton’s principle. The developed nonlocal models have the capability to interpret small scale effects. Winkler and Pasternak types elastic foundation are employed to represent the interaction of the nano FG beam and the surrounding elastic medium. A parametric study is conducted to investigate the influences of the static load factor, temperature change, nonlocal elastic parameter, slenderness ratio, surface effect and springs constant of the elastic medium on the dynamic stability characteristics of the FG beam, with simply-supported boundary conditions. It is found that the difference between instability regions predicted by local and nonlocal beam theories is significant for nanobeams with lower aspect ratios. Moreover, it is observed that in contrast to high temperature environments, at low temperatures, increasing the temperature change moves the origins of the instability regions to higher excitation frequencies and leads to further stability of the system at lower excitation frequencies, considering surface stress effect shifts the FG beam to higher frequency zone.