The formation of the mullite phase is the main challenge in the preparation of alumina-mullite-zirconia (AMZ) composites. To overcome this limitation, a novel method based on the coating of zircon powder with aluminum alkoxide was proposed in this study. Reaction sintering of alumina and coated zircon was carried out at 1630 °C for 3 h. The microstructural, physical, mechanical, and tribological properties of samples were compared with the conventional AMZ composites prepared by common mixing of alumina and zircon. The microstructural analysis indicated the higher alumina phase of the sample prepared with the conventional method. On contrary, the samples prepared with the proposed method included higher percentages of mullite phase. In terms of mechanical properties, the conventional AMZ samples performed better. However, due to the beneficial effect of the mullite phase in tribological applications, the samples prepared with this new method show superior wear resistance. Especially, the samples prepared from 30 wt% aluminum alkoxide exhibited the best wear resistance. The delamination and adhesive wear mechanisms govern the wear process.