In this work, the flexure strength and fracture propagation mechanisms in yttria tetragonal zirconia (3YTZP) dense composites with 1 and 5 vol.% exfoliated graphene nanoplatelets (e-GNP) were assessed. The composite powders were processed by dry planetary ball milling to exfoliate the as-received GNP, and then densified by spark plasma sintering (SPS). The hardness and Young’s modulus were measured by Vickers indentation and the impulse-echo technique, respectively. Flexural strength and modulus were estimated by four-point bending tests. Finally, cracks originated by Vickers indentations were analyzed by scanning electron microscopy (SEM). The Raman spectra and SEM observations showed a reduction in the number of graphene layers and most remarkably in the lateral size of the e-GNP, achieving a very homogeneous distribution in the ceramic matrix. The hardness, elastic modulus, and flexural strength of the 3YTZP matrix did not vary significantly with the addition of 1 vol.% e-GNP, but they decreased when the content increased to 5 vol.%. The addition of e-GNP to 3YTZP increased its reliability under bending, and the small lateral size of the e-GNP produced isotropic fracture propagation. However, the energy dissipation mechanisms conventionally attributed to the larger GNP such as fracture deflection or blocking were limited.