Nickel dispersed alumina matrix nanocomposites were fabricated using a novel soaking method. Secondary particles were introduced into the nano-pores of a porous matrix grains by a soaking method, such that γ-alumina powder was soaked in nickel nitrate solution under vacuum. During pre-calcination, nickel oxide particles were created inside of the nano-pores of γ-alumina. The alumina powders were then reduced under hydrogen atmosphere to obtain nano-sized metallic nickel embedded in γ-alumina grains. The alumina-nickel composite powders were sintered by pulse electric current sintering (PECS) technique with α-alumina seeds. The maximum strength of the alumina-nickel nanocomposites was 984 MPa after sintering at 1,450 °C with α-alumina seeds, where the specimen size was 2210 mm3. The maximum fracture toughness was 5.5 MPa·m1/2 after sintering at 1,350 °C with seeds measured by the single edge V-notched beam (SEVNB) method.