Toughened partially stabilized zirconia (PSZ) ceramics possess a number of advantageous properties for advanced engine components, in particular for adiabatic engine systems. Magnesia partially stabilized zirconia (Mg-PSZ), is one of the toughest ceramics yet developed also possessing excellent insulating, high strength, good thermal shock and wear resistance properties. In addition PSZ has a thermal expansion coefficient and elastic modulus similar to iron and steel. Over the last three years, it has been shown as a result of the combination of these thermal and mechanical properties, that Mg-PSZ is suitable for applications as varied as cylinder liners, valve guides, valve seats, piston caps, hot plates and tappet (cam follower) inserts. In non-automotive applications this material can be used in extrusion dies, plastic moulding dies, powder metallurgical dies, dry conveyor bearings and prothesis implants.