The effect of $alpha$-Al2O3 seeding on preparation of zirconia/alumina gel fragment prepared by sol-gel processing was characterized through XRD, SEM, TG/DTA and IR analysis. Aluminum isopropoxide and zirconium butoxide were used as starting materials. $alpha$-Al2O3 seeding restrained grain growth of alumina and zirconia, and decreased tetragonal to monoclinic phase transformation of zirconia on cooling. Therefore, fine zirconia-toughened alumina composite having the relative sintered density of about 98% of theoretical at 140$0^{circ}C$ for 2h could be obtained.