Al2O3/YAG/ZrO2 powders with eutectic composition have been synthesized by the chemical co-precipitation in alcohol-water aqueous solution and calcination method, and were characterized by X-ray diffraction, scanning electron microscopy and transmission electron microscopy. The precursors were calcined at temperatures of 600 similar to 1350 degrees C in air, and the phase transition process was then revealed with increasing the calcination temperature. Al2O3/YAG/ZrO2 powders calcined at 1300 degrees C for 1 h consist of alpha-Al2O3, YAG and c-ZrO2 phases. Al2O3/YAG/ZrO2 ceramics with eutectic composition were hot-pressed at 1550 degrees C with the above-mentioned powders. The Al2O3/YAG/ZrO2 ceramic sintered at 1550 degrees C contains an intragranular microstructure, and exhibits a relative density of 98.8%, a room-temperature flexural strength of 420 MPa, a fracture toughness of 3.69 MPa.m(1/2) and a high-temperature (1000 degrees C) flexural strength of 464 MPa. The formation mechanism of an intragranular microstructure in the Al2O3/YAG/ZrO2 ceramic has been proposed.