Al2O3-Ni composite materials have been made by a hot pressing technique. Two composite microstructures, i.e. a dispersive distribution of nickel particles and a network distribution of nickel particles in an alumina matrix, have been produced. The fracture toughness of the composite materials has been measured by a double cantilever beam method. Both composites are tougher than the virgin alumina matrix. The fracture toughness of the composite with a network microstructure is much higher and has a more desirable R-curve behaviour than the composite with a microstructure of dispersed particles. For the particulate dispersion microstructure, the main limitation to toughening is the lack of plastic deformation of the ductile nickel due to the pull out of nickel particles, indicating weak bonding at the Al2O3/Ni interface. For the network microstructure composite, the gauge length of the ductile phase is much larger, allowing the ductile nickel to stretch to failure between the crack faces. A large extent of nickel plastic deformation has been observed, a nd the weak bonding at the Al2O3/Ni interface can promote partial debonding and contribute further to toughening.