Tissue reaction and stability of partially stabilized zirconia ceramic in vivo was evaluated with the use of the subcutaneous implantation test. During the experimental period, zirconia ceramic was completely encapsulated by a thin fibrous connective tissue with less than 80 microns thickness. No changes of weight and 3-point bending strength were detected after 12 months of implantation. The result suggests that zirconia ceramic is biocompatible and no degradation of zirconia ceramic occurred.