P-type BiSbTe/Y2O3 nanocomposites have been fabricated by ball milling and Spark plasma sintering. Seebeck coefficient is eminently improved (45%) due to scattering of carriers through the energy filtering effect. Thermal conductivity is reduced by 22% in nanocomposites due to carrier/phonon scattering. Hardness of nanocomposites was significantly improved (>49%) compared to pure BiSbTe.