Acoustic emission (AE) is the elastic waves generated in materials due to multiplication, annihilation and cooperative movements of dislocations. It is also known that crack initiation and propagation and phase transformation are the major contributors of AE. Crack initiation and propagation, which are directly related to the fracture toughness, can be successfully monitored by using AE technique. It was established that for brittle materials where the dislocation activity is less, the crack propagation can be monitored by AE signals. The AE emission rate is uniquely related to the fracture toughness for the propagating crack. AE technique offers two distinct advantages over conventional and optical microscopic methods of analysing cracks - it is more sensitive and it can determine the time history of damage propagation. The aim of this work is to study the AE activity during indentation fracture toughness testing of 25 wt% silicon carbide whisker reinforced alumina composite, zirconia toughened alumina and alumina based wear resistant ceramic. It has been shown as to how the emitted AE signals may characterize the crack growth during loading and unloading of an indentation test. The results indicate that in case of the composite the amount of crack growth during unloading was higher than t hat of loading. These variations depend on the indentation load and of course on the inhomogeneity of the material. But in the case of zirconia toughened alumina and alumina based wear resistant ceramic, less AE activity was observed during unloading. At higher loads AE activity was more pronounced in these ceramics which was not observed in the case of composite. In all cases, hold time had no effect on AE activity. Also the indentation fracture toughness varied linearly with the square root of crack length. This is indicative of compressive residual stresses being present in t he material which has been confirmed by indentation technique. Indentation fracture toughness testing generated AE signals between 40 to 80 dB in the case of the composite material, which is relatively hard. But in the case of other ceramics, less intensive AE signal was observed.