During an investigation of the role of alumina particles in ceria‐stabilized tetragonal zirconia polycrystals (Ce‐TZP)1we observed that a group of samples (based on a Ce‐TZP matrix (8.5 mol% Ceria) containing 15 vol% dispersed alumina particles), exhibited an extended plastic deformation after the first elastic response. This deformation could be retained upon a prompt unloading from a fourpoint bend jig. These deformed (bent) specimens recovered their original straight shape when heated above 200°C, exhibiting features like the shape memory effect (SME). A careful examination of the samples revealed the presence of wedgelike transformation zones intruding the bulk of the specimen inwards from the tensioned side.In an attempt to increase the degree of bending, other samples of the same composition and microstructure have been placed under a static load and maintained under that condition for ≅15 min. The penetration depth of the transformation zone reached the opposite face of the samples and the monoclinic‐phase concentration rose about 50% on both sides. Through this inwards movement, these samples, that were initially bent, showed an elongation of about 0.5% and became straightened. These samples returned to their original size after heating at ≅250°C. To get a deeper insight, samples have been examined by X‐ray diffraction (XRD), differential thermal analysis (DTA), and thermod