In this work, mullite-zirconia composite were fabricated by reaction sintering of Algerian halloysite Al2Si2O5(OH)4, boehmite Al(OOH), and zirconia (ZrO2) powder using conventional heating. The appropriate amount of the three raw powders was ball milled for 5 h and sintered between 1250 and 1650• C for 2 h. A scanning electron microscope was used to characterize the microstructure of sintered samples. A dilatometer and X-ray diffractometer were used to analyze the formation and transformation of phases. It is found that for the addition of zirconia up to 20wt.% the zirconia phase retains its tetragonal structure. The formation of primary mullite in all samples was complete at 1220•