Microballoons (hollow-particles) filled polymeric composites, known as "Syntactic Foams" find extensive applications in aerospace structures, which demand careful study and testing before they can be used effectively in service conditions. Hybrid syntactic foams have been fabricated in this study with rubber reinforcements (2% rubber and 63% microballoons) and characterized for the fracture behavior. The three-point bend test results show that syntactic foams with rubber reinforcements had higher density and fracture toughness than syntactic foams without inclusion of rubber reinforcements. The load displacement curves showed a small plastic deformation region prior to the specimen fracture. Extensive scanning electron microscopy was carried out to understand the origin of the fracture toughness properties and related them to the material microstructure.