Nanostructured Alumina – 20 vol% 3YSZ composites powder were synthesized by wetmilling technique. The starting materials were a mixture of Alumina micro-powder and 3YSZ nano-powders. Nano-crystalline grains were obtained after 24 h milling time. The nano-structured powder compacts were then processed to full density at different temperatures by high-frequency induction heat sintering (HFIHS). Effects of temperature on the mechanical and microstructure properties have been studied. Al2O3-3YSZ composites with higher mechanical properties and small grain size were successfully developed at relatively low temperatures through this technique. The samples were densified by heating to a sintering temperature in the range of 1100 to 1400 °C, and then fast cooled to 500 °C within short time. A relative density of up to 99% theoretical density of the composites was achieved after sintering at 1370 °C.