Ceramic-bonded diamond composite particle includes a plurality of diamond grains and silicon carbide reaction bonded to the diamond grains having a composition of 60-90 wt. % diamond, 10-40 wt. % silicon carbide, ≦2 wt. % silicon. Particles are formed by processes that forms granules in a pre-consolidation process, forms a densified compact including ceramic-bonded diamond composite material in a consolidation process or forms ceramic-bonded diamond composite material directly, and a post-consolidation process in which the densified compact or ceramic-bonded diamond composite material is mechanically broken to form a plurality of the particles. Inert or active material can be incorporated into the densified compact or coated on granules to reduce the number and extent of diamond to silicon carbide bonding occurring in the consolidation process and make the ceramic-bonded diamond composite material more friable and easily breakable into composite particles.