Natural magnesite is the primary source for magnesia‐based refractory materials. India has vast deposits of magnesite in Salem and Almora regions. However, due to the presence of large amount of impurities which forms low‐melting compounds at elevated temperature, its high‐temperature application is restricted. Raw magnesite was evaluated in terms of chemical analysis, differential thermal analysis, thermogravimetric analysis, and phase assemblage. Zirconia (1‐5 wt %) was added to Indian natural magnesite of Salem region to minimize the low‐melting phase formation at high temperatures. Samples were sintered in the temperature range of 1550‐1700°C. Sintered samples were characterized in terms of densification, mechanical and thermo‐mechanical properties, phase assemblage, and microstructure. It was found that the addition of zirconia reduced the formation of detrimental phases like monticellite and thereby improved the high‐temperature mechanical properties.