This study investigated the feasibility of depositing graphene nanoplatelet (GNP)-reinforced yttria-stabilized zirconia (YSZ) composite coatings. The coatings were deposited from an ethanol-based mixed YSZ and GNP suspension using suspension plasma spraying (SPS). Raman spectroscopy confirmed the presence of GNPs in the YSZ matrix, and scanning electron microscopy (SEM) analysis revealed a desired columnar microstructure with GNPs distributed predominantly in the inter-columnar spacing of the YSZ matrix. The as-deposited YSZ-GNP coatings were subjected to different isothermal treatments—400, 500, and 600 °C for 8 h—to study the thermal stability of the GNPs in the composite coatings. Raman analysis showed the retention of GNPs in specimens exposed to temperatures up to 500 °C, although the defect concentration in the graphitic structure increased with increasing temperature. Only a marginal effect on the mechanical properties (i.e., hardness and fracture toughness) was observed for the isothermally treated coatings.