The microstructure model of Al2O3/graphene (AG) composite ceramic tool material is established based on Voronoi tessellation. The cohesive element method was used to simulate the crack growth of AG. The effect of cohesive parameters at the grain boundary of Al2O3 and graphene on the crack propagation was investigated. The results show that the grain strength of graphene is too high, the crack propagation to graphene grains will be hindered and cannot propagate forward. Cracks tend to spread along the paths where the crack propagation drive force was high and the resistance was low. When the interface strength between Al2O3 and graphene was at the weak interface, the crack propagation path and length were relatively straight and short. The average energy release rate G C is 1.042 × 10−3 J/m2, which is 2.4% higher than that of single-phase Al2O3 ceramic tool materials. However, if the interface strength between Al2O3 and graphene was at the strong interface, the crack propagated along graphene particles for a short distance, consuming a large amount of fracture energy. Furthermore, the crack will deflect around graphene grains, which increases the crack propagation length. The average energy release rate G C is 1.039 × 10−3 J/m2, which is 2% higher than that of single-phase Al2O3 ceramic tool materials.