Intra-type alumina-based nanocomposites, in which second-phase nanoparticles are embedded within alumina grains, use dislocation activities to enhance strength and fracture toughness. The dislocations are generated around the nanoparticles by residual stresses during cooling process. In this paper, first, we explain strengthening and toughening mechanisms of alumina-based nanocomposites based on dislocation activities. Second, we propose a soaking method to construct the intra-type nanostructure and fabricate alumina/nickel and alumina/silver nanocomposites. The nanocomposites are then annealed in order to enhance the fracture toughness of the materials. Finally, we discuss the relation between the strength, fracture toughness, and critical frontal process zone size of the materials.