The feasibility of diamond ceramics has been demonstrated at Crystallume by consolidating diamond powder with CVD diamond to near full density producing disks of several millimeter thickness. In this study, we will develop a high toughness diamond matrix composite in collaboration with the University of California, Berkeley. Samples will be fabricated at Crystallume in which cubic boron nitride powder is incorporated in a CVD diamond matrix for enhancing toughness. Mechanical testing will be performed at the Materials Science and Mineral Engineering Department, University of California, Berkeley, to examine fatigue and fracture properties. The results of this study will provide the basis for optimizing diamond composite microstructures in Phase II for wear and cutting applications. This new material can be processed in useful shapes and will exhibit superior hardness, exceptional toughness, and high thermal conductivity. A high toughness diamond composite will be of considerable interest in abrasive wear and cutting tool applications. The proposed work will provide a new material which can be produced in useful shapes and will not require a wear-resistant coating. Products may include tool inserts, bearing elements, and structural components.