621.762 Oxide composite Al 2 O 3 -ZrO 2 (Y 2 O 3 ) powders containing 50 and 70 vol.% Al 2 O 3 , are deposited from salt solutions. The surface area of the deposited powders exceeds 75 m 2 /g. It is established that the α-Al 2 O 3 and t-ZrO 2 (Y 2 O 3 ) matrix has an effect on stepwise crystallization of α-Al 2 O 3 and the powder production history on the sinterability of oxide composites. Ceramics based on Al 2 O 3 -ZrO 2 (Y 2 O 3 ) composite powder containing 20 vol.% titanium carbonitride are hot pressed to be used as a cutting tool. The microstructure and mechanical properties of the ceramics are analyzed. The best mechanical properties are shown by ceramic samples sintered at 1550°C at 35 MPa: bending strength 950 MPa, fracture toughness 10.1 MPa ⋅ m 1/2 , and hardness 18.0 GPa. The performance and lifetime of cutting tools based on these ceramics are tested according to GOST 26613-85.