A composite-laminate formed by thick layers ( 320 µm) of zirconia-toughened alumina (ZTA) with thin ( 50 µm) interlayers of zirconia partially stabilized (Y-PSZ) has been fabricated by tape casting and pressureless sintering. Fracture behavior and strength has been investigated and compared to a “monolithic” reference, e.g. a stack of zirconia-toughened alumina (ZTA) without interlayers. The fracture behavior has been analysed using stable crack growth in V-notched specimens loaded in 3-point bending. The ZTA+Y-PSZ composite laminate presented a rising crack resistance with maximum values between 6 and 14 MPa m1/2. In contrast, the “monolithic” ZTA laminate shows a plateau R-curve behavior at 2.7 MPa m1/2. Several toughening mechanisms were identified in the ZTA+Y-PSZ composite laminate, such as, crack arrest/slow down, micro cracking and bifurcation. These toughening mechanisms are most likely caused by high tensile residual stresses that were estimated theoretically.