Transparent Al2O3 and TiO2 clear sols prepared by hydrolysis and subsequent peptization were mixed into wet gel. EDS analysis for this gel showed that wet gel was extremely homogeneous in chemical composition. Calcination of the wet gel at 120$0^{circ}C$ for 50 minutes resulted in Al2O3-TiO2 nanocomposite powders where TiO2 particles of 101~102 nanometer were dispersed in the Al2O3 matrix. Both powders were sintered for 4 hours in the temperature range over 1500~1$650^{circ}C$ with and without 5wt% MgO sintering aid. Among these sintered bodies, nanocomposite powder compacts sintered at 1$650^{circ}C$ for 4 hours with 5wt% MgO showed the most dense structure with the grain size under 5${mu}{ extrm}{m}$ and highest relative density of 98.2%.