In this paper, the nanostructured zirconia (ZrO2) based thermal barrier coatings (TBCs) deposited by high efficiency supersonic atmospheric plasma spraying (SAPS), were described. The phase composition, microstructure, thermal conductivity and thermal shock resistance of as-sprayed coating were studied. The results revealed that the as-sprayed coating was composed of tetragonal zirconia and consisted of some unmelted nanoparticles (30-50 nm) and nanograins (60-110 nm), and the latter was the main microstructure of the coating. The nanograins and homogeneously distributed micro-cracks of coating resulted in not only low thermal conductivity, but also high thermal cycling lives. Besides, the failure process of coating during thermal cycles was also investigated in the present work. (C) 2011 Elsevier B.V. All rights reserved.