Polycrystalline diamond (PCD) carbide composites of this invention have a microstructure comprising a plurality of granules formed from PCD, polycrystalline cubic boron nitride, or mixture thereof, that are distributed within a substantially continuous second matrix region that substantially surrounds the granules and that is formed from a cermet material. In an example embodiment, the granules are polycrystalline diamond and the cermet material is cemented tungsten carbide. PCD carbide composites of this invention display improved properties of fracture toughness and chipping resistance, without substantially compromising wear resistance, when compared to conventional pure PCD materials.