An optimization of sintering of zirconia/alumina FGM was carried out using computer simulation. The evolution of stresses and deformation behavior during entire processing cycle (heating, sintering, cooling) were simulated. It was shown that the reasonable surface compressive stresses and minimum stress mismatch can be obtained by adjusting processing parameters like distribution of green density, initial particle size and gradient profile of the zirconia/alumina concentration. This gives an opportunity to design such composite with improved properties.