Abstract In order to evaluate the effect of nano-sized dispersoid to microscopic stress distribution of multilayered composite, two kinds of multilayered composites, Al 2O 3/3 mol% Y 2O 3-stabilized ZrO 2 (3Y-TZP) and Al 2O 3/3Y-TZP(SiC), were fabricated. The latter composite contained nano-sized SiC dispersion within 3Y-TZP layers. The micro-residual stress measurement by X-ray diffraction (XRD) analysis for the monolithic 3Y-TZP and 3Y-TZP(SiC) nanocomposite layers within each composite revealed the existence of tensile and compressive stresses perpendicular and parallel directions to the layers, respectively. The tensile stress of approximately 200–300 MPa was observed to distribute across the zirconia layers in both composites. On the other hand, much higher compressive stress (i.e., 500–700 MPa) existed with a steep distribution across the layer especially for the monolithic Al 2O 3/3Y-TZP multilayered composite. However, both tensile and compressive stress distributions were found to be flattened when nano-sized SiC was incorporated into 3Y-TZP layer.