Alumina-Zirconia is prepared for oil filter. Oil filters are used to separate oil derivatives from each other using separation principles depending on the size of the holes. These filters work on the principle of separation depending on the density and viscosity of liquid or on the difference in impurity crystals size. This work involves preparation of filters from Alumina-Zirconia powder materials by a hybrid freeze casting and space-holder method. These filters have excellent properties such as stability at high temperature, excellent corrosion resistance; withstand static stresses, and other unique thermal properties. Alumina-Zirconia powder is mixed with different amounts of (zero, 15, 25, and 35 vol. %) of starch powder. Powder mixture has been blending with water using an electric mixer to obtain homogeneous slurry. Solid: liquid ratio of slurry of 30:70 is poured in a cylindrical metal molds and freezed by liquid nitrogen chamber. The solidified material was heat treated at 300 °C for 60 min then sintered at 1550 °C, 1600 °C and 1700 °C under vacuum for 120 min. Hot samples were cooled inside furnace until room temperature. The sintered materials were examined to show the effect of starch adding and sintering process on the porous structure and permeability ratio of the fluid using Archimedes method and SEM image analyzed by J-image program. Best permeability and homogeneous porous structure are obtained at 1600 °C sintering temperature with 24 vol. % of starch powder.