The effects of processing parameters of physical vapour deposition on the microstructure of partially stabilized zirconia (PSZ) thermal barrier coatings have been experimentally investigated. Emphasis has been placed on the crystallographic texture of the PSZ coatings and the microstructure of the top surface of the PSZ coatings as well as the metal-ceramic interface. The variations in the deposition chamber temperature, substrate thickness, substrate rotation and vapour incidence angle resulted in the observation of significant differences in the crystallographic texture and microstructure of the PSZ coatings.