The thermal stability of nano composite materials is the important aspect of the modern era. In the advance modern devices, the nanostructures and nano composite material are used for the biological and other applications. The aluminum oxide is the most prominent oxides and composite at nano scale that show different structures, electrical and thermal properties which make it useful in different applications. Sol-Gel technique was used for synthesis to grow these nanostructures of Al2O3-ZrO2. Thermal stability was achieved and thermo-gravimetric (TGA) graphical analysis of synthesized material was performed. Size, phase and structure validation about the productive material was studied by X-Ray diffraction powder technique. Reaction completion and idea about annealing temperature of the synthesized material had pointed out by DSC-TGA (SDT) graphical peaks. Effect of the temperatures with equal variation from 500 0C, 700 0C, 900 0C and 1100 0C was performed to achieve the target thermal stability. Thermal analysis was also conducted in ANSYS workbench to visualize the thermal distributes like heat flux through the material. Optical properties such as band gap variation with temperature were studied by UV-vis analysis. Fourier transform infrared (FTIR) analysis was also performed. This work provides useful information related to nanostructures with sintering effect, residual and thermally stable analysis.