The microstructure and physical properties of new Y2O3 and Al2O3 oxide-doped silicon nitride ceramics fabricated by cold isostatic pressing and free sintering were investigated. The phase composition of produced material was also studied by X-ray diffraction at room and elevated temperature. The fabricated ceramics featured a microstructure of Si5AlON7 grains with a fine-grained α-Si3N4 with a small amount of Y2SiAlON5. Described ceramics is attractive for many high-temperature structural applications due to beneficial combination of fine-grained structure with improved mechanical properties and small weight loss.