Gadolinium zirconate (GZ)-based TBCs comprising GZ as the top layer and yttria stabilized zirconia (YSZ) as the base layer, are attractive double-layered thermal barrier coatings (TBCs) for high temperature gas turbine engine application. This work attempts to understand the influence of individual layer microstructure on the durability of GZ/YSZ double-layered TBCs processed by suspension plasma spray (SPS). Two different spray parameters were chosen to obtain a combination of three microstructurally distinct GZ/YSZ double-layered TBCs i.e. GZ porous (P)/YSZ porous (P), GZ dense (D)/YSZ porous (P) and GZ dense (D)/YSZ dense (D). Thermal diffusivity of the as-deposited coatings was measured using Laser Flash Analysis (LFA) technique and the thermal conductivity of the TBCs was calculated. The GZ/YSZ double-layered TBC specimens were subjected to two different durability tests, i.e. thermal cyclic fatigue (TCF) and burner rig test (BRT). Sintering behavior of the individual layer TBC microstructures was evaluated by comparing the porosity evolution in as-deposited and TCF tested TBCs. Fracture toughness measurements performed on each layer of the double-layered TBCs were correlated with the durability results. Thermal cycling results amply demonstrate that the individual layer microstructure of GZ/YSZ double-layered TBC influenced its durability. Detailed failure analysis of the TCF and BRT failed specimens revealed similar failure modes for GZ (P)/YSZ (P), GZ (D)/YSZ (P) and GZ (D/YSZ (D) TBCs under identical thermal cyclic test conditions. However, failure modes differed when subjected to different thermal cyclic test conditions (TCF and BRT) and the probable causes are discussed. Findings from this work provide key insights on designing durable GZ/YSZ double-layered TBCs.