The microstructure and mechanical properties of nanocomposites synthesized by chemical processing were investigated. The nanocomposites containing 15 vol% hexagonal BN (h-BN) were fabricated by hot-pressing powders covered with turbostratic BN (t-BN). The t-BN coating on particles was prepared by heating particles covered with a mixture of boric acid and urea in hydrogen gas. TEM observations of this nanocomposite revealed that nano-sized h-BN particles were homogeneously dispersed within grains as well as at grain boundaries. The strength and thermal shock resistance were significantly improved in comparison with the microcomposites.