Tetragonal (t)-ZrO2/Al2O3 composites doped with Y2O3, Nb2O5, and Fe2O3 ((Y, Nb, Fe)-TZP/Al2O3) were prepared over the range containing Fe2O3 from 0.1 to 0.5 mol% with 0.1 mol% intervals to evaluate the effect of Fe2O3 addition on chromaticity, hydrothermal stability, and mechanical property of the composites. After autoclaving for 20 h at 18$0^{circ}C$ under 3.5 MPa water vapor pressure, no tlongrightarrowm phase transformation was observed probably due to the preferential solid solubility of Fe2O3 in Al2O3, the presence of the rigid Al2O3 particles, and the inherent phase stability of (Y, Nb)-TZP. The optimized strength and the fracture toughness of the composite were 700 MPa and 8.5 MPa.m1/2, respectively, when 0.1 mol% Fe2O3 was added. The composites have shown a gradual color change from a slightly white ivory to a pale yellowish brown with increasing the Fe2O3 concentration.