This paper examines the microstructure of sintered magnesia partially stabilized zirconia (Mg-PSZ) with alumina and titania additions. Two effects are mainly responsible for enhanced thermal shock performance, microcrack generation by zirconia destabilization and in situ spinel formation as well as development of a duplex microstructure within the zirconia matrix. The duplex microstructure formation is controlled by the sintering kinetics as a function of the MgO concentration and the spinel formation. Titania additions, thereby, improve the sintering kinetics remarkably.