This review outlines the state of the art, processing techniques, and mechanical testing methods of zirconia (ZrO₂)-based composites reinforced by carbon nanotubes (CNTs). The use of CNTs as a secondary phase in a zirconia matrix is motivated by their outstanding crack self-healing ability, the possibility to tailor the desired nano-structural properties, and their exceptional wear behavior. Therefore, a detailed investigation into CNT features has been provided. The debate of using the different Vickers indentation fracture toughness equations to estimate the resistance of crack propagation was critically reviewed according to crack characteristics. Finally, this review particularly highlights the exceptional role of ZrO₂-based composites as a promising material owing to their outstanding tribo-mechanical properties.