The microstructure and mechanical properties of ceramic composites produced from alumina, yttria stabilized zirconia and chromia oxide system was investigated. The Cr2O3 weight percent was varied from 0 wt% to 1.0 wt%. Each batch of composition was mixed, uniaxially pressed to 13mm diameter and sintered at 1600 ◦C for 4 h in pressureless conditions. Studies on the effects of the sample microstructures on their mechanical and physical properties such as fracture toughness and bulk density were carried out. Results show that an addition of 0.6 wt% of Cr2O3 produces the best mechanical properties. Furthermore, microstructural observations show that the Al2O3 grain size is significantly dependent on the amount of Cr2O3 additives used. Maximum value obtained with 0.6 wt % Cr2O3 for the fracture toughness is 5.36 MPa.m1/2.