In this study, powder compaction of AZO (alumina doped zinc oxide) powder was performed with a MTS 810 test system using a cylindrical die having a diameter of 10mm. Pressure-density curves were measured based on the load cell and displacement of the punch. The AZO powder compacts with various densities were formed to investigate the mechanical properties such as fracture stress of the AZO powder as a function of the compact density. Two types of compression tests were conducted in order to estimate the fracture stress using different loading paths: a diameteral compression test and a uniaxial compression test. The pressure-density curves of the AZO powder were obtained and the fracture stress of the compacted powders with various densities was estimated. The results show that the compact pressure dramatically increases as the density increases. Based on the experimental results, calibration of the modified Drucker-Prager/Cap model of the AZO powder for use in FE simulations was developed.