Zirconia dispersed alumina ceramics exhibit better thermal and mechanical properties, such as thermal shock resistance, fracture toughness and fracture strength, than conventional alumina ceramics [1]. The toughening mechanisms operating in an alumina-zirconia two-phase ceramic material are determined by such compositional and microstructural parameters as the particle size, size distribution and volume fraction of zirconia inclusions, the type and amount of stabilizing agent in the zirconia inclusions, and the size and size distribution of the alumina matrix [2]. Stress-induced transformation toughening in an alumina matrix containing metastable tetragonal zirconia grains is the principal toughening and strengthening mechanisms responsible for the improved mechanical properties. In contrast, the volume expansion and shear strain associated with the spontaneous ZrO2 (t) to ZrO2 (m) transformation in an alumina matrix containing unstabilized zirconia grains may result in the formation of mierocracks on cooling from the sintering temperature [3, 4]. Similarly, microcracks develop on cooling from the sintering temperature in many two-phase ceramic materials due to the differential thermal contractions between the inclusion phase and the matrix phase [5]. The fracture toughness of a ceramic material may be significantly improved by the occurrence of a well-defined microcrack network, although the fracture strength is degraded as a result of the increase in critical flaw sizes. Claussen and co-workers [3, 4] observed that the fracture toughness of an alumina matrix containing unstabilized zirconia inclusions at the grain boundaries and grain junctions peaked at a specific zirconia volume fraction, depending on the particle size of the zirconia inclusions. At the peaktoughness volume fraction, the material demonstrates a fall in fracture strength. Li [6] observed a similar maximum in fracture toughness and fall in fracture strength at 5.0 vol% Hf0.75Zr0.2502 for one of the hafnia-zirconia dispersed alumina ceramics fabricated by conventional pressureless sintering. It was concluded that the fall in fracture strength was related to the coalescence of microcracks at a high enough zirconia volume fraction in the alumina matrix. Attempts have been made of investigating the effects of Various types of microcrack on the fracture toughness and fracture strength of zirconia dispersed ceramic matrices [7-9]. Discrete microcracks, by their ability to extend in the stress field of a propagating crack or to deflect the propagating crack, contribute to toughening [3, 4]. Over-extended microcracks and the subsequent coalescence affect