ZrO 2 ceramic exhibits the characteristics of high hardness, good thermochemical stability, desirable biocompatibility, and unique stress‐activated tetragonal to monoclinic transformation toughening, thus having broad development prospects. However, as a typical ceramic material, it has the common shortcoming of brittleness and seriously limits the possible applications. In recent years, worldwide efforts have been made to improve the toughness of ZrO 2 ceramic materials, which has great significance in promoting its industrial application. Herein, the influences of phase composition, stabilizer, grain size, and sintering method on fracture toughness of ZrO 2 ceramic are introduced. The mechanism of phase transformation toughening, single‐phase and multiphase material dopant toughening, and lamellar ceramic toughening are also summarized. Moreover, the prevailing applications of toughened ZrO 2 ‐based materials in structural ceramics, coatings, and biomaterials are discussed. The present review may offer insights in designing and fabricating ZrO 2 materials with high strength and toughness to provide better performances in diverse applications fields.