Abstract: Alumina reinforced zirconia (ARZ) ceramic particle reinforced 316L stainless steel (316L stainless steel/ARZ) composites were prepared by powder metallurgy. The effects of ARZ ceramic particle volume fraction on the microstructure, relative density, hardness, and wear resistance of 316L stainless steel/ARZ composites were investigated. The results show that, when the ARZ volume fraction is 20%, the relative density of the composite reaches 97.53%, which is similar to that of the stainless steel matrix. The agglomeration of ceramic particles decreases the relative density of the composite when the ARZ ceramic particles are added. The hardness of 316L stainless steel/ARZ composites increases with the increase of ARZ volume fraction. When the volume fraction of ARZ ceramic particles is 60%, the hardness of composites reaches the maximum as HRB 96.8. The wear resistance of the composites is better than that of the stainless steel matrix, and the volume wear rate of the composites with the ARZ volume fraction of 60% is 4.2 times lower than that of the matrix. The wear resistance of the composites increases with the increase of ARZ ceramic particle content. The abrasion mechanism of 316L stainless steel/ARZ composites is mainly the desquamation of 316L stainless steel particles.