Intermetallic-Bonded Diamond composites (IBDs) represent a ground breaking new group of materials patented in 2007 by two SIUC faculty. IBDs consist of diamond and carbide phases embedded into an intermetallic Ni3Al matrix, which can be further alloyed by additional elements such as Mo, B, Ti, W, Fe, Cr, Zr and others. Polycrystalline Diamond Compacts (PDCs), one of today’s industry-leading materials, consist of diamond crystallites held together by Co-alloy. Both the IBDs and PDCs are designed for “high wear” applications with necessary resistance of tools such as in coal mining, machining of materials, oil drilling and others. IBD has a cutting capacity and wear resistance far exceeding current cemented tungsten carbide materials. In previous research, a series of specifically designed IBD composites have been found to exceed the standards of toughness and wear resistance in mining and oil drilling applications, but no systematic research has been done to compare the friction, wear, and toughness properties of IBDs and PDCs. This research project compared selected properties and performance levels of IBD and PDC samples. During impact testing, samples were subjected to impact energies of up to 125 J in order to examine the fundamental differences in the fracture mechanisms using Scanning Electron Microscopy. During friction and wear testing, sample edges were pressed against rotating discs of cast iron, steel, and granite in order to analyze and compare the mechanisms of friction and wear of IBDs and PDCs. Results show that PDCs outperform IBDs in “smooth wear” testing, but IBD is superior in impact resistance and “impact wear” testing. Several industries are currently interested in licensing this promising new material, and this research is a key component for the future applications of IBDs.