A newly developed particle-reinforced composite based on a high-alloy metastable CrMnNi TRIP steel was investigated concerning its fracture toughness behavior. The particle reinforcement was done using 10 vol.% of metastable MgO-partially-stabilized ZrO 2 (Mg-PSZ), which has the capability of a stress-induced transformation from the tetragonal to the monoclinic phase. Moreover, the alloying concept of the steel matrix enables a strain-induced transformation from the metastable γ‑austenite phase to the α’‑martensite phase leading to an increase in strength and ductility. Both effects in combination are intended to dissipate energy and increase the fracture toughness of the composite material (R‑curve behavior). To evaluate the mechanical performance of the composite, tensile and fracture mechanics tests according to ISO 12135 were performed, followed by microstructural investigations. The fracture process was analyzed in an in situ tensile test with simultaneous recording of SEM micrographs and subsequent optical analysis of deformation. The results obtained show that the toughness of the composite is primarily determined by the presence of reinforcement particles. The low interfacial strength between the steel and ceramic associated with small interparticle spaces leads to an accelerated fracture process and a low overall toughness. This behavior is amplified as soon as particle clusters are formed during processing.