Fine-grained Mg-PSZ has been fabricated by adding TiC particles. The average cubic grain size was smaller by more than an order of magnitude than without TiC when the TIC content was over 2.5 vol%. Pressurelessly sintered specimens contained numbers of relatively large pores while hot-pressed ones were fully dense, For hot-pressed specimens, addition of TiC particles did not affect the growth behavior of tetragonal precipitates during annealing, With increasing TiC content, the bend strength of hot-pressed specimens increased while the fracture toughness decreased. The bend strength and the fracture toughness of fine-grained Mg-PSZ containing 5 vol% TiC were 980 MPa and 8.2 MPa.m(1/2), respectively.