Yttria stabilized tetragonal zirconia polycrystals (Y-TZP) have been applied to dental crown and bridges. Whereas, to further improve its mechanical strength, the zirconia/alumina nano-composite stabilized with cerium oxide (Ce-TZP/Al2O3 nano-composite) was developed. In the present study, biaxial flexure strength, fracture toughness and hardness were determined before and after soaking in water-based conditions and the possibility of application to all ceramic dental restorations was discussed. In comparison to Y-TZP, Ce-TZP/Al2O3 nano-composite has quite high flexure strength and fracture toughness along with satisfied durability for LTAD in various water-based conditions encountered in dentistry. Therefore, it is concluded that the nano-composite can be safely applied to dental restoratives such as all-ceramic bridges.