Y2O3 and Nb2O5 co-doped tetragonal zirconia polycrystals((Y, Nb)-TZP) containing 10 to 30 vol% $Al_2O_3$ were prepared and hydrothermal stability of the composites was evaluated after aging for 5 h at the temperature range of $150^{circ}C$ $250^{circ}C$ under 4 MPa $H_2O$ vapor pressure in an autoclave. The (Y, Nb)-TZP/Al2O3 composites showed excellent phase stability under the hydrothermal conditions, as compared with the 3Y-TZP/$Al_2O_3$ composites, due to the combined effects of the Y-Nb ordering in the $t-ZrO_2$ lattice, the reduction of oxygen vacancy concentration, and the $Al_2O_3$ addition. The strength and fracture toughness of the (Y, Nb)-TZP/$Al_2O_3$ composite, containing 20 vol% of 2.8 $Al_2O_3$ particles, were 700 MPa and 8.1 MP.$am^{1/2}$, respectively.