Activated alumina powders have been synthesized by using a novel dry process of pulsed wire discharge. The temperature of phase transition from activated alumina to alpha-alumina and its variation caused by adding zirconia have been investigated. A mixture of activated alumina and zirconia was formed by mixing zirconium plasma with aluminum plasma and cooling together in an oxygen atmosphere. It was found that the transition temperature increased when the zirconia content ratio was increased. On the other hand, results of X-ray diffraction and X-ray photoelectron spectroscopy analysis indicated no substitution of zirconium in an alumina lattice. Thus, most of the zirconium atoms were located in zirconia particles on the surface and/or the grain boundary of alumina grains. Thus, it appears that the increase in the phase transition was caused by retardation of atomic diffusion at zirconia particles.