The influence of ZrO2 addition on microstructre and mechanical strength of magnesia ceramics were discussed. ZrO2 was existed as a cubic phase resulted from MgO solubility into ZrO2 on firing at temperature range from 130$0^{circ}C$ to 1$600^{circ}C$ for 2 h. The addition of ZrO2 markedly promoted the densification of MgO also above 150$0^{circ}C$ and the sintered density at 1$600^{circ}C$, 2 h reached to 95.2% of the theoretical. The solubility of MgO into c-ZrO2 was about 7.68 wt% and it was segregated at grain boundary on cooling to room temperature. ZrO2 existing as a second phase retarded the grain growth of MgO. The bending strength were increased to 240 MPa with the amount of ZrO2.