This paper presents an approach to concurrent toolpath planning for multi-material layered manufacturing (MMLM) to improve the fabrication efficiency of relatively complex prototypes. The approach is based on decoupled motion planning for multiple moving objects, in which the toolpaths of a set of tools are independently planned and then coordinated to deposit materials concurrently. Relative tool positions are monitored and potential tool collisions detected at a predefined rate. When a potential collision between a pair of tools is detected, a dynamic priority scheme is applied to assign motion priorities of tools. The traverse speeds of tools along the x -axis are compared, and a higher priority is assigned to the tool at a higher traverse speed. A tool with a higher priority continues to deposit material along its original path, while the one with a lower priority gives way by pausing at a suitable point until the potential collision is eliminated. Moreover, the deposition speeds of tools can be adjusted to suit different material properties and fabrication requirements. The proposed approach has been incorporated in a multi-material virtual prototyping (MMVP) system. Digital fabrication of prototypes shows that it can substantially shorten the fabrication time of relatively complex multi-material objects. The approach can be adapted for process control of MMLM when appropriate hardware becomes available. It is expected to benefit various applications, such as advanced product manufacturing and biomedical fabrication.