In this study, lanthanum oxide (La2O3) dispersed molybdenum (Mo–La2O3) alloys are fabricated using lanthanum nitrate solution and nanosized Mo particles produced by hydrogen reduction of molybdenum oxide. The effect of La2O3 dispersion in a Mo matrix on the fracture toughness at room temperature is demonstrated through the formation behavior of La2O3 from the precursor and three-point bending test using a single-edge notched bend specimen. The relative density of the Mo–0.3La2O3 specimen sintered by pressureless sintering is approximately 99%, and La2O3 with a size of hundreds of nanometers is uniformly distributed in the Mo matrix. It is also confirmed that the fracture toughness is 19.46 MPa·m1/2, an improvement of approximately 40% over the fracture toughness of 13.50 MPa·m1/2 on a pure-Mo specimen without La2O3, and this difference in the fracture toughness occurs because of the changes in fracture mode of the Mo matrix caused by the dispersion of La2O3.