In purpose of introducing the inverse magnetostrictive properties into the structural ceramics, based nanocomposites dispersed with nano-sized Ni-Co particles were studied. The composites were fabricated by the hydrogen reduction and hot-pressing of and NiO-CoO mixed powders. The mixtures were prepared by using Ni- and Co-nitrate as source materials for the Ni-Co particles. Microstructural observations revealed that nano-sized Ni-Co particles were dispersed homogeneously at grain boundaries. High strength above 1 GPa was obtained for the wt% Ni-Co nanocomposite fabricated by a controlled powder preparation process. The inverse magnetostrictive response to applied stress was obtained due to the presence of dispersed Ni-Co particles, which indicates a possibility to incorporate new functions into the structural ceramics without loosing the mechanical properties.