Effect of CrSi₂ and HfB₂ addition on densification and properties of ZrB₂ has been investigated. Dense samples of ZrB₂+10%CrSi₂ and ZrB₂+10%CrSi₂+10%HfB₂ were prepared by hot pressing. Addition of CrSi₂ assisted in densification of ZrB₂ at lower hot pressing temperature (1650 °C) and pressure (20 MPa). During sintering, formation of ZrSi₂ took place which helps in densification by liquid phase sintering. Hardness of ZrB₂ with silicide was measured to be lower than the monolithic ceramic, but the fracture toughness was higher. CrSi₂ addition improved the oxidation resistance of ZrB₂ in the temperature range of 800–1000 °C due the formation of silica based glassy layer on the surface. Addition of HfB₂ to this composite has been found to increase the hardness. Oxidation resistance of the composite containing 10%HfB₂ was found superior compared to other samples. Thus a composite having a higher fracture toughness and better oxidation properties than monolithic ZrB₂ has been developed with the addition of CrSi₂ and HfB₂.