Ni - 1 wt.% Y2O3-92ZrO2 (YSZ) composite is fabricated by powder metallurgy technique with subsequent annealing at 1250 °C. Both the presence of ceramic nanopowder inclusions in the composite and identity of the compositions specifying the final phase and the initial mixture are revealed by energy dispersive analysis. With scanning electron microscopy, the microstructure of the composite is examined, and its typical grain size is estimated. The mechanical tests of the composite are performed addressing both tension of flat specimens and compression of cylindrical specimens. The optimal techniques for the further cyclic tests of Ni - 1 wt.% YSZ are proposed according to the standardized tests (GOST 25.502-79).