The 1.5- to 3-mol% Y2O3-stabilized tetragonal ZrO2 (Y-TZP) and Al2O3/Y-TZP nanocomposite ceramics with 1 to 5 wt% of alumina were produced by a colloidal technique and low-temperature sintering. The influence of the ceramic processing conditions, resulting density, microstructure, and the alumina content on the hardness and toughness were determined. The densification of the zirconia (Y-TZP) ceramic at low temperatures was possible only when a highly uniform packing of the nanoaggregates was achieved in the green compacts. The bulk nanostructured 3-mol%-yttria-stabilized zirconia ceramic with an average grain size of 112 nm was shown to reach a hardness of 12.2 GPa and a fracture toughness of 9.3 MPa.m(1/2). The addition of alumina allowed the sintering process to be intensified. A nanograined bulk alumina/zirconia composite ceramic with an average grain size of 94 nm was obtained, and the hardness increased to 16.2 GPa. Nanograined tetragonal zirconia ceramics with a reduced yttria-stabilizer content were shown to reach fracture toughnesses between 12.6-14.8 MPa.m(1/2) (2Y-TZP) and 11.9-13.9 MPa.m(1/2) (1.5Y-TZP).