The novel concept offered in this proposal was to introduce metal colloids/precipitates in the ceramics, and to enhance the toughness and ductility properties of the ceramics. Precipitate sizes and their number density are to be optimized in the synthesis and processing part of this proposed work. Detailed material characterization and modeling of toughness and ductility are to be used to correlate microstructures with the mechanical properties of the ceramics. This proposal intends to investigate the cases of metal colloids/precipitates in MgO or Al2O3 ceramics. Metals can be transition metals such as Ni. %%% This project investigates metal colloids/precipitates in MgO or Al2O3 ceramics. It offers the metal colloids/precipitates as infinite sources of dislocations, which contribute to the improvements in toughness as well as to ductility. If provides great potentials in expanding the possible applications of ceramics as structural elements. Potential benefits to the industrial usage of ceramics can be very substantial.