Aluminum nitride (AN) ceramics with the concurrent addition of CaZrO3 and Y2O3 were sintered at 1450-1700 degrees C. The degree of densification, microstructure, flexural strength, and thermal conductivity of the resulting ceramics were evaluated with respect to their composition and sintering temperature. Specimens prepared using both additives could be sintered to almost full density at relatively low temperature (3 h at 1550 degrees C under nitrogen at ambient pressure); grain growth was suppressed by grain-boundary pinning, and high flexural strength over 630 MPa could be obtained. With two-step sintering process, the morphology of second phase was changed from interconnected structure to isolated structure; this two-step process limited grain growth and increased thermal conductivity. The highest thermal conductivity (156 Wm(-1) K-1) was achieved by two-step sintering, and the ceramic showed moderate flexural strength (560 MPa).