ABSTRACT WC-Co composites are widely used in cutting tools but are expensive and harmful due to Co in the composites. Alternatives, such as WC-Ni composites have inferior mechanical properties, as a result, WC-Co composites are used in most cutting tools. This study investigated whether adding yttrium oxide (Y2O3) to WC-Ni composites, fabricated from recycled tungsten carbide (WC) and Ni, improved their mechanical properties. Changes in the composites’ microstructure and mechanical properties depended on the amount of Y2O3 added. Y2O3 reacted with WC during sintering, promoting the formation of W and reducing the proportion of C in the composite. The added Y2O3 accelerated the dissolution of W in the Ni matrix, and increased the fractions of the eta phase and solid solution phase. Ni is strengthened by the dissolution of W in Ni, thereby supplementing the low toughness of the eta phase and ultimately yielding WC – Ni with improved hardness and fracture toughness (HV: max. 15.4 GPa, KIC: max. 13.4 MPa∙m1/2) compared to WC – Ni without Y2O3 (HV: 13.5 GPa, KIC: 12.7 MPa∙m1/2). The method for improving the properties of WC – Ni composites by the addition of Y2O3 has a high possibility of commercialization because it does not necessitate process changes.