In this paper, a series of YSZ/NiZn ferrite composites with seven varying volume fractions of NiZn ferrite (0 vol%, 20 vol%, 40 vol%, 50 vol%, 60 vol%, 80 vol% and 100 vol %) were prepared. The complex permeability of the composites was measured in frequency range from 1 MHz to 100MHz and the effect of the composition on the hardness and complex permeability was investigated. The results show that the Vickers hardness of the composites decreases slightly first and the dramatic decrease occurs when the content of NiZn ferrite is above 0.5. Meanwhile, the permeability of the composites increases sharply when the volume fraction of NiZn ferrite is above 0.6, which can be considered to be the magnetic percolation with a percolation threshold of about 0.6.