An indigenous sol-gel derived yttria-partially stabilized zirconia (Y-PSZ) powder has been characterized and its suitability for plasma spraying applications evaluated. The powder, determined to have about 5·1% yttria content, predominantly consisted of spherical particles with an average equivalent particle diameter close to 25 μm. Furthermore, it was found that the powder did not contain any particles >50 μm, which is considered the ideal upper size limit for spray-grade ceramic powders in order to ensure complete melting during spraying. The sol-gel produced powder exhibited good flow characteristics and the plasma sprayed coatings developed using this powder were also found to have excellent thermal shock resistance. The corresponding results obtained using an imported Y-PSZ powder are also presented for the purpose of comparison. © 1993 Indian Academy of Sciences.