Since the concept of nanocomposite was proposed by Niihara, cermets have become one of the active fields in ceramic matrix composites in recent years [1–3]. With the combination of two constituents in nanoscale the microstructure and mechanical properties were greatly improved as compared to their convenient-prepared counterparts. Besides, the combination of functional ceramics with nanosized particles of transition metals leads to multifunctional composites with enhanced functions and better mechanical properties [4–6]. The toughening and strengthening mechanism of nanocermets was closely related to the microstructural refine ment and the transgranular fracture mode of nanocermets. These superior nanocermets were often prepared by in situ hydrogen reduction of powder mixture, and then hot pressing of powder compacts [7]. In this way the microstructure and mechanical properties of nanocermets would be influenced by several parameters, such as milling time [8]. In this letter we reported the preparation of Ni-Al2O3 nanocermets from coated powders, where nanosized Ni particles were coated with alumina layers. The main objective of this work is to explore the coating layer of nanosized metal particles on the microstructure and sintering behavior of Ni-Al2O3 nanocermets. Nanosized Ni powders were prepared by the arc plasma method [9]. The average particle size was about 34 nm. Ni fraction could be changed from 1–15 vol%. The aluminum hydroxide of coating phase came from the reaction of aluminum sulfate (Al2(SO4)3·18H2O, AR) with sodium aluminate (NaAlO2, CP). Solutions of sulfate and aluminate with equal volume were firstly prepared with distilled water. The molar ratio of aluminate to sulfate was kept at 6 to ensure complete neutralization of reactants. Then, the weighted Ni powder was dispersed into aluminate solution with the aid of a ultrasonic agitator to break down Ni agglomerates. After 15 min the sulfate solution was added dropwise into the suspension under vigorously stirring by a mechanical agitator to prevent from the sedimentation of Ni powder. When it finished, the precipitated powder was filtered, washed with distilled water and absolute alcohol, respectively. Finally, the powder collected was dried at 80 ◦C in air and passed through 200 meshes. The as-prepared powder was calcined in argon in the temperature range of 700–1000 ◦C. These powders were characterized by transmission electron