Prestressed SUS316 fibers/ZrO2 composite was fabricated using tape casting. Causes of cracks were analyzed by classical thermo-elastic theory and finite element method in preparation process. An optimization design was carried out on SUS316 fibers’ arrangement modes by reducing residual thermal stress. Interface topography and element distribution of composite were observed, and bending strengths were tested. Results show that cracks are generated along the direction vertical to SUS316 fibers by axial thermal stress due to different thermal expansion coefficients between SUS316 fibers and zirconia, and the average cracking space is 2 mm. No macroscopic defect is found in composite with SUS316 fibers of sine distribution, and it has better interfacial binding force since interdiffusion between SUS316 and zirconia. Bending strengths of composite with 0°/0°lamination are anisotropic and that are 385.74 MPa and 500.7 MPa respectively, but that with 0°/90°lamination is isotropic and it is 433.92 MPa. Bending strength of composite is increased obviously compared with that of zirconia because the prestress of surface is compressive stress. Prestressed SUS 316 fibers / ZrO2 composite was fabricated using tape casting. Causes of cracks were analyzed by classical thermo-elastic theory and finite element method in preparation process. An optimization design was carried out on SUS316 fibers’ arrangement modes by reducing residual thermal stress. Interface topography and element distribution of composite were observed, and bending strengths were tested. Results show that cracks are generated along the direction vertical to SUS316 fibers by axial thermal stress due to different thermal expansion coefficients between SUS316 fibers and zirconia, and the average cracking space is 2 mm. No macroscopic defect is found in composite with SUS316 fibers of sine distribution, and it has better interfacial binding force since interdiffusion between SUS316 and zirconia. Bending strengths of composite with 0 ° / 0 ° lamination are anisotropic and that are 385.74 MPa and 500.7 MPa respectively, but that with 0 ° / 90 ° lamination is isotropic and i t is 433.92 MPa. Bending strength of composite is increased significantly compared with that of zirconia because the prestress of surface is compressive stress.