TiN-Al2O3 composite powder was prepared by aluminothermic reduction-nitridation method with starting materials of aluminumª²containing dross and rutile, and metallic aluminum in the aluminumª²containing dross as reducer. The influences of synthesis temperature (600-1 400 ¡æ) and aluminumª²containing dross addition (20% lower than theoretical value, theoretical value, 20% higher than theoretical value, and 50% higher than theoretical value) on phase compositions and microstructure of the composites were investigated, and the reaction mechanism was analyzed. The results show that (1) TiN-Al2O3 composite powder can be synthesized under the experimental conditions; the main phases are TiN, ᪲Al2O3, a little bytownite, and MgAl2O4; (2) enhancing synthesis temperature or increasing aluminumª²containing dross addition favors the reaction of aluminothermic reduction-nitridation; (3) in the synthesized products, ᪲Al2O3 is platy or columnar; TiN is subª²micron granular, which reinforces and toughens the composite.