A fiber-reinforced ceramic matrix composite material exhibiting increased matrix cracking strength and fracture toughness is produced by sequentially depositing a plurality of 5-500 nanometer-thick layers of a primary ceramic matrix material phase periodically separated by 1-100 nanometer-thick intermediate layers of a secondary matrix material phase onto the reinforcing fibers upon their consolidation. The resultant nanolayered matrix enhances the resistance to the onset of matrix cracking, thus increasing the useful design strength of the ceramic matrix composite material. The nanolayered microstructure of the matrix constituent also provides a unique resistance to matrix crack propagation. Through extensive inter-layer matrix fracture, debonding and slip, internal matrix microcracks are effectively diverted and/or blunted prior to their approach towards the reinforcing fiber, thus increasing the apparent toughness of the matrix constituent. This unique toughening mechanism serves to dampen energetic co-planar macrocrack propagation typically observed in conventionally manufactured ceramic matrix composites wherein matrix cracks are usually deflected at the fiber/matrix interphase region.