Prospects for revolutionary design of future power generation systems are contingent on the development of durable high-performance ceramic composites. With recent discoveries in materials and manufacturing concepts, composites with all-oxide constituents have emerged as leading candidates, especially for components requiring a long service life in oxidizing environments. Their insertion into engineering systems is imminent. The intent of this article is to present a synopsis of the current understanding of oxide composites as well as to identify outstanding issues that require resolution for successful implementation. Emphasis is directed toward material systems and microstructural concepts that lead to high toughness and long-term durability. These include: the emergence of La monazite and related compounds as fiber-coating materials, the introduction of the porous-matrix concept as an alternative to fiber coatings, and novel strategies for enabling damage tolerance while retaining long-term morphological stability. Additionally, materials and mechanics models that provide insights into material design, morphology evolution, and composite properties are reviewed.