The urea hydrolysis method was used to prepare NiO-deposited YSZ composite powders. First, micrometer-sized YSZ particles were fabricated, and then the nanosized NiO particles were deposited on the surface of the YSZ particles. The microstructure of composite powders and the sintered bulk were further characterized with the aid of XRD, SEM, and TEM. The results indicated that the mesoporous and microsheet-like Ni(OH)(2)center dot xH(2)O (x=0-1) crystals were deposited on the surface of YSZ particles. As the concentration of Ni2+ ion in the stock solution increased, the deposited NiO content and thickness of NiO layer on the YSZ particle surface also increased. In addition, the YSZ particle size showed significant influence on the microstructure and conductivity of Ni/YSZ cermet anode produced by NiO-deposited YSZ composite powders. Such NiO-deposited YSZ composite powders can be easily sintered to form a continuous NiO network.