AlN ceramics used in electronic substrates and packages are fabricated by the densification of green bodies with sintering aids such as rare-earth oxides. The homogeneous dispersion of the sintering aids, achieved with the help of the mechanochemical bonding of several types of fine powders, is the key process for obtaining a good sinterability and high performance. In this study, we fabricated the AlN ceramics using AlN and nano-Y2O3 composite particles prepared by mechanical treatment. The AlN powder and nano-Y2O3 powder were ball-milled with Al2O3 balls and a dispersant in ethanol in a plastic pot. The powder mixture of AlN and Y2O3 was composited by mechanical treatment. The composite powder was granulated and pressed to obtain a green body. After dewaxing, the AlN green body was fired at 1800°C in 0.6 MPa N2. The sintered body possessed a fracture toughness of 3.6 Pa•m1/2, higher than that, 3.1 Pa•m1/2, of the AlN ceramics fabricated without the mechanical treatment. An observation of the fractured surface revealed that grain boundary reinforcement enhances the fracture toughness of the AlN ceramics made of composite particles.