Machinable ZrO2/CePO4 composite was fabricated. ZrO2/CePO4 and mild steel materials were machined with tungsten-cobalt carbide twist drills. The material removal characteristic was analyzed by consideration of tool wear in different stock removals. Wear of twist drills was observed with SEM. Wear widths on major flank were measured with microscope. The experimental results show when ZrO2/CePO4 was drilled, wear widths on flank were much bigger comparing to mild steel drilling processes. The wear of twist drills occurred on major flank, minor flank and on chisel edge. Wear on minor flank is a unique characteristic in drilling of ZrO2/CePO4 ceramics. There exist obvious scratch remarks on tool wear. The tool wear results from abrasive wear, adhesive wear and oxidation wear.