Effect of two‐step sintering (TSS) on microstructure and mechanical properties of ceria‐stabilized zirconia‐toughened alumina with added TiO2 (CSZTA–TiO2) was studied. A coprecipitation technique was used to produce the CSZTA–TiO2 powders. The synthesized powders were compacted using a uniaxial hydraulic press and conventionally sintered in air. The phase and microstructure of sintered samples were studied using X‐ray diffraction and scanning electron microscopy techniques. Phases were quantified using the Rietveld refinement method. Different TSS schedules were followed to optimize microstructure and mechanical properties. Mechanical properties of the CSZTA‐4TiO2 composite were evaluated and found as follows: Vickers's hardness of 1650 ± 9.6 HV10, indentation fracture toughness of 8.45 ± .14 MPa √m, compressive strength of 2088 MPa, and Young's modulus of 158 GPa.