Mullite - zirconia ceramics was investigated using as starting components differently prepared powders. For synthesis of powders conventional and hydrothermal methods were applied. Characteristics of synthesised powders and their influence on sintering rate, phase composition and properties of mullite-zirconia ceramics were studied and compared. Compositions of Al2O3, SiO2•nH2O, ZrO2 (mon.), Y2O3 obtained by conventional method and of Al(NO)3.9H2O, SiO2–aeroc, ZrO(NO3).2H2O, Y(NO3)3 .6H2O obtained by hydrothermal preparing starting powders were used to satisfy the mullite – ZrO2 (tetr.) composition. The pressed samples were sintered at temperatures from 1100 to 15000C. It is shown that densification is greatly affected by milling time of conventional, as well as of hydrothermal preparing method. XRD and SEM examinations showed that there is a difference in the temperature of mullite - ZrO2 (tetr.) phase formation, as well as in morphology and grain size of sintered at 13000C samples.