To clarify the fracture mechanism of alumina-spinel castables, two kinds of alumina-spinel castables with or without fused zirconia-alumina (FZA) were prepared. The full-field strains and crack propagation process in the region of interest (ROI) of alumina-spinel castables were investigated by wedge splitting test (WST) and digital image correlation (DIC) technique. Fractographic methods were used to analyze the crack propagation path of the castables after the WST. The results indicated that the load-displacement curve of alumina-spinel castables containing FZA exhibits a non-linear fracture, demonstrated typical ductile fracture; while that of alumina-spinel castables without FZA is linear, showed typical brittle fracture. The characteristic length reaches to 258.9 mm in FZA containing castables, more than 4 times that of the castables without FZA. In contrast, castables containing FZA has longer and more tortuous crack propagation path, larger damage zone length, which results in the increase of the dissipated energy. Crack branching can be observed around the main crack in castables containing FZA, meaning that microcracks toughening is the main mechanism for flexibility improvement of the alumina-spinel castables containing FZA, formation of micro-cracks can be attributed to the martensitic transformation of zirconia.