Abstract: A new bio-composite material , graded zirconia-hydroxyapatite composite Bioceramic , has been preparedby the dry-laying & sintering method , and it s mechanical properties , microst ructure and biocompatibility have beenstudied. The powders and the composite material were investigated using SEM , XRD , TEM and EDAX. To evaluate it s biocompatibility , the ext ract of the composite material was used to carry out a mouse acute toxicity test , a cytotoxicity test , an in vit ro hemolytic test , and a rabbit muscle and bone implantation experiment . The result s showthat the coating of the composite material is about 80μm thick , and is well bonded with the core mat rix without obvious interface. The bond st rength is 15. 1 MPa , the maximum flexural st rength is 1112. 24 MPa , and KIC is 7. 3～11. 4 MPa·m^1/2 . The graded zirconia2hydroxyapatite composite bioceramic has excellent biocompatibilities and boneconductivities , which can promote the growing of bone issues , so it is an ideal bio-composite material for orthopaedicimplantation.