The production of multilayer ceramics by laminating stacked green ceramic tapes is one of the most attractive methods to fabricate layered materials. In this work, a new lamination technique was employed to obtain laminated ceramic structures in the aluminazirconia system with residual stress compression at the outer layers. This reinforcement mechanism would lead to ceramics with changed material properties and R-curve behaviour. The optimization of processing parameters for fabrication of defect free monolithic and laminated structures is described. The residual stresses developed in the laminated structures are discussed in terms of the results obtained from piezo-spectroscopic technique measurements and finite element method calculations.