We report, for the first time, the effect of lanthanum zirconate (La2Zr2O7) particles on the microstructure and mechanical behavior of an experimental molybdenum oxide dispersion-strengthened alloy. The focus was on the preparation of the novel Mo–La2Zr2O7 composite using high-energy ball milling and spark plasma sintering and on the comparison of its microstructural and mechanical properties with pure Mo and Mo–La2O3 ODS alloy counterparts. Mechanical properties were assessed using a Vickers hardness test at room temperature and a three-point flexural test in the temperature range from − 150 to 150 °C. The microstructure of the studied materials and their fracture behavior were evaluated using x-ray diffraction, energy-dispersive x-ray spectroscopy, and scanning electron and transmission electron microscopy. The strengthening effect of La2Zr2O7 particles was found to be lower than that of La2O3 particles, resulting in a 30-35% lower yield stress and flexural strength of the Mo–La2Zr2O7 alloy compared to the Mo–La2O3 alloy. The experimental Mo–La2Zr2O7 alloy exhibited low plasticity and no distinct ductile-to-brittle transition temperature (DBTT) in the tested temperature range, unlike pure Mo and the Mo–La2O3 alloy, which had the DBTT of 63 and 1 °C, respectively. Fracture occurred mainly in a brittle intergranular manner in the entire testing temperature range, while the counterpart materials showed localized plastic stretching at grain boundaries and within grains at and above the transition region. The observed behavior was primarily related to lower strengthening and brittleness as well as less effective grain boundary purification.