Al2O3/t-ZrO2 particulate composites were prepared by sintering at 150$0^{circ}C$ and 1$600^{circ}C$ for 2h in air and microstructure and mechanical properties of the composites were investigated. Although most ZrO2 particles existed at Al2O3 grain boundaries a few ZrO2 particles within Al2O3 grains. Al2O3 grain growth was depressed due to the pinning effect by ZrO2 particles. During sintering coarsening of intergranular ZrO2 particles occurred as a results of the elimination of ZrO2 intraagglomerate grain boundaries and the coalescence of dragged ZrO2 particles by migrating Al2O3 grain boundries. Changes in mechanical properties of Al2O3 composites were dependant on microstructure of Al2O3 matrix and on size and structure of dispersed ZrO2