The advent of high-throughput plasma spray systems that allow axial feeding encourages the study of using liquid feedstock for various next-generation functional applications. The current study explores the benefit of such a plasma spray system to deposit hybrid powder-suspension Al2O3-YSZ ceramic matrix composite (CMC) coatings for tribological applications. The tribological performance of the hybrid processed CMC coatings was assessed using scratch, ball-on-plate wear and erosion tests and compared with that of monolithic powder-derived Al2O3 coatings. As-deposited and tribo-tested coatings were characterized using Scanning Electron Microscopy, X-ray Diffraction and Energy Dispersive Spectroscopy to analyse their microstructure and phase constitution. The results showed that the tribological performance of the hybrid powder-suspension Al2O3-YSZ CMC coating was significantly improved by enhancing the wear resistance under scratch, dry sliding ball-on-plate and erosion tests as compared to the conventional APS deposited monolithic Al2O3 coating. About 36% decrease in the dry sliding ball-on-plate specific wear rate and up to 50% decrease in the erosion wear rate was noted in the hybrid powder-suspension Al2O3-YSZ CMC coating as compared to the conventional APS deposited monolithic Al2O3 coating. The study concludes that the hybrid powder-suspension route can create CMC coatings with unique multi-length scale microstructures which can be attractive for combining different tribological attributes in the same coating system.