Al2O3-YAG composite was obtained by sintering of porous Al2O3 preforms infiltrated with water solution of aluminium nitrate nonahydrate, Al(NO3)3?9H2O and yttrium nitrate hexahydrate, Y(NO3)3?6H2O. Al2O3 preforms with porosity varying from 26 to 50% were obtained after sintering at temperature ranging from 1100 to 1500?C. Sintering of the infiltrated Al2O3 preforms led to formation of YAG particles due to reaction between Y2O3 and Al2O3 at high temperature. It was found that variation of porosity of alumina preforms and sintering temperature is an effective way to fabricate Al2O3-YAG composite with an unusual combination of properties. Open porosity was in the range 15-35%, specific surface was 0.6-6.1 m2/g, pore size was 150-900 nm whereas compressive strength was from 50 to 250 MPa. The effect of sintering temperature on YAG formation and phase composition were investigated using X-ray diffractometry whereas microstructure of the composite was analysed by scanning electron microscopy.