Zirconia-doped alumina nanometric powder (5 mol%) was prepared by means of microwave hydro- and solvothermal syntheses, with the use of either bi-distilled water or diethylenic glycol as solvents, respectively. The as-obtained products were thermal treated at different temperatures (400 degrees, 450 degrees, and 500 degrees C) to study the phase evolution. The experimental method allows synthesis of carbon-coated zirconia-dispersed alumina nanopowders with excellent characteristics, such as very fine size, high homogeneity, no phase separation, and narrow size distribution.