An advanced ceramic cutting tool material has been developed by means of silicon carbide whisker (SiCw) reinforcement and silicon carbide particle (SiCp) dispersion. The material has the advantage of high bending strength and fracture toughness. Compared with the mechanical properties of Al2O3/SiCp(AP), Al2O3/SiCw(JX-1), and Al2O3/SiCp/SiCw(JX-2-I), it confirms that JX-2-I composites have obvious additive effects of both reinforcing and toughening. The reinforcing and toughening mechanisms of JX-2-I composites were studied based on the analysis of thermal expansion mismatch and the observation of microstructure. The cutting performance of JX-2-I composites was investigated primarily.