This paper considers fracture strength, fracture origins, and hydrothermal degradation of 3Y-TZP with grain sizes in the range of 110-480 nm. Biaxial fracture strength testing was used to show that the fracture strength increases with grain size and is governed by the concurrent change in fracture toughness. Hydrothermal degradation was studied by means of fractography, Raman microscopy and its effect on fracture strength. Up to 200 nm grain size, hydrothermal degradation of strength is limited. Larger grain sizes exhibit either premature failure or an increase in strength. A surface transformation zone was found to be responsible for both phenomena.