Continuous progress in modern science and industry depends on the availability of new effective devices and materials. New generation materials should be characterized by a specified combination of properties which sometimes exclude one another. Al2O3-Cr composites belong to this group of materials. This study is concerned with the effect of the method of preparation of the starting powders upon the properties of sintered Al2O3-Cr composites. The composites were produced using powder mixtures with various volumetric shares of the starting powders (from 25 to 75vol.%). The mixtures were prepared by conventional mechanical mixing in a ball-mill or by mechanical alloying in a high-energy mill of the attritor type. It has been found that with mechanically alloyed powders the Al2O3-Cr composites have better bending strength, hardness and frictional wear resistance.