Crack propagation and deformation behavior of a pressureless-sintered Al2O3-24 vol. % ZrO2 composite have been studied by transmission electron microscopy on Vickers-indented specimens from room temperature to 1200 °C. Hardness of the composite gradually decreases with increasing temperature, whereas the ratio of indent to crack lengths, which corresponds to the apparent toughness of materials, decreases up to about 1000 °C and then quickly increases with increasing temperature. In the samples indented at room temperature and 1000 °C, most of the cracks propagate along Al2O3/ZrO2 interfaces and Al2O3 grain boundaries, but a few monoclinic ZrO2 grains are transgranularly fractured. These fractured grains are heavily deformed and produce a marked reduction of the driving force for propagation of cracks at room temperature. In the sample indented at 1200 °C, cracks are hardly observed, but on the other hand, formation of subgrain boundaries, elongation of grains, and grain boundary sliding are observed both in the Al2O3 and ZrO2 grains located around the indentation site.