The purpose of this work was to co-fire crack-free varistor-ferrite ceramic multilayers fabricated via a dry pressing route. Multilayers were sintered using a standard industrial grade varistor sintering regime. Sinter shrinkages of both varistor and ferrite materials were measured using dilatometry and showed that the varistor shrunk significantly more than the ferrite material. X-ray diffraction analysis indicated that no significant phase changes occurred in the materials under investigation as a result of the sintering process. Scanning electron microscopy observations of the dry-pressed co-fired varistor-ferrite revealed vertical cracking in the ferrite due to thermal expansion mismatch between the materials. By pressing a mixed composition interlayer in the ratio 50:50, between the varistor and ferrite materials, a crack-free multilayer structure could be obtained. Energy dispersive X-ray analysis of the co-fired ferrite and varistor confirmed diffusion of Fe and Ni components from the ferrite into the varistor material. The degree of diffusion was reduced by using 50:50 ratio mixed composition interlayers.