3Y-TZP/TiNiCo composites have been successfully fabricated by three step heating (dehydrogenation, hydrogen reduction, hot-pressing) of 3Y-TZP /NiO/TiH2/CoO powder mixtures. XRD analysis revealed that TiNi-base intermetallic compounds such as Ni4Ti3, NiTi, Ni3Ti had formed. The bending strength of 3Y-TZP/TiNiCo composites (~650 MPa) were much higher than those of 3Y-TZP monolith (350 MPa) sintered at the same condition. The electrical resistivity characteristics indicated that 3Y-TZP/30 vol%TiNiCo composites were good electrical conductors. Cobalt addition to TiNi phase influenced on electrical properties of final composites, while their fracture strength was unchanged by the Co addition.