Solid solutions of $(Zr/Ti)O_2$ were prepared in powder form by the coprecipitation technique. After mixing with carbon or exposing to nitrogen gas at elevated temperature, titanium cations selectively diffused out from the oxide compound to form titanium carbide (TiC) or titanium nitride (TiN), respectively. TiN formed strong interfacial contacts between the oxide grains. In contrast, TiC formed as small crystallites on oxide grains but did not bind the matrix grains together. TiN therefore played a role in strengthening the interparticle bonding, but TiC weakened the bonding between grains. Partial diffusion of titanium cations also led to nanolayered structure being formed between the oxide grains, which provided weak interfacial layers that fractured in a step-wise fashion.