In this investigation, bar-shaped specimens which consisted of three layers are prepared to study the effects of residual compressive stress on the mechanical properties in ZTA. The outer layers contained Al2O3 and unstabilized ZrO2 and the central layer contained Al2O3 and stabilized ZrO2(with 5.10wt% Y2O3). When cooled from the sintering temperature, some of zirconia in the outer layers transformed to the monoclinic form while zirconia in the central layer was retained in the tetragonal form. The transformation which induces to dilatational expansion led to the estabilishmenet of compressive stress in the outer layers and balances tensile stress in the central layer. Decrease of outer layer thickness(for a fixed total thickness)increases residual compressive stress. Because of residual compressive stress in the outer layers, the fracture toughness of outer layers of 3-layers composite is 10.21 Mpam1/2, which is increased to 25% above in comparison with 1-layer specimens in ZTA. Also, the 3-layers composite is believed to exhibite greater fracture resistance in contact damage environment from thermal shock test.