Al2O3/ZrO2 composites were prepared by precipitation method using Al2(SO4)3.18H2O, ZrOCl2.8H2O and YCl3.6H2O as starting materials and NH4OH as a precipitation agent. Al2O3/ZrO2 composites(series A) were prepared by mixing Al2O3 powder obtained by single precipitation method with ZrO2(＋3m/o Y2O3) powder obtained by co-predipitation method. Al2O3/ZrO2 composites (series B) were prepared by co-precipitation method using the three starting materials. In all cases, the composition was controlled as Al2O3-15v/o ZrO2(＋3m/o Y2O3). The composites of series A showed higher final relative densities than those of series B and tetagonal ZrO2 in all cases was retained to about 95% at room temperature. ZrO2 particles were coalesced more rapidly in grain boundary of Al2O3 than within Al2O3 grain. ZrO2 particles were located at 3-and 4-grain junction of Al2O3 and limited the grain growth of Al2O3. It was observed that MgO contributed to densification of Al2O3 but limited grain growth of Al2O3 by MgO was not remarkable. In all Al2O3/ZrO2 composites, exaggerated grain growth of Al2O3 was not observed and Al2O3/ZrO2 composites were found to have homogeneous microstructures.