In this paper, a functional k-potent matrix satisfies the equation, where k and r are positive integers, and are real numbers. This class of matrices includes idempotent, Nilpotent, and involutary matrices, and more. It turns out that the matrices in this group are best distinguished by their associated eigen-structures. The spectral properties of the matrices are exploited to construct integral k-potent matrices, which have special roles in digital image encryption.