Increasing the efficiency of the gas turbines for power generation systems is being considered with pronounced attention . In order to increase the efficiency of the gas turbine by means of increasing the operating temperature, the turbine material should be chemically and mechanically stable at higher temperature. Thermal barrier coatings (TBC) are employed to protect the metallic surface from high temperature exposure for a long period of time. The coating is usually made of ceramic material and applied as a thin layer over the metallic surface, which makes insulation between the components and very high temperature environment. In this way, TBCs help the structural material to sustain at ambient temperature for prolonged time, which consequently allows very high operating temperature. At the same time, the thermal conductivity of the coating material has to be low enough to get the sufficient temperature drop between coating and the substrate. This allows the operating temperature to be increased furthermore and reduces the cooling requirement. Extensive efforts have been directed in recent past towards the development of high-quality TBCs for gas turbine systems [1-14]. The mostly used and industrial standard current TBC materials are based on yttria-stabilized zirconia (YSZ). It has been reported that this material is only stable up to 1200 °C, because of its phase transformation after this temperature. Because the phase change associated with the volume change initiates cracks, the ultimate result is the failure of the TBC . Therefore, some of the recent works have been directed towards the development of new or alternate TBC materials with the low thermal conductivity at higher temperature for prolonged time exposure to the hot gas environment [1,15-15]. Hafnia-based materials have demonstrated a great potential to be applied as thermal barrier coating at higher temperature . It has been reported that hafnia can be stabilized in cubic structure by yttria doping, which is stable at higher temperature [18-20]. So, yttria-stabilized hafnia (YSH) shows a great promise as a next generation TBC material for advanced turbine technology. Several works have been directed toward the investigation of thermal conductivity of TBC material using various methods [1,2,5,17]. Very few efforts have focused on the thermal conductivity of YSH. Matsumoto et al.  and Rosencwaig and Gersho  explored the thermal conductivity and sintering behavior of YSH at higher temperature grown by electron beam physical vapor deposition (EBPVD). In the literature, nanostructured materials showed the lower thermal conductivity compared to the traditional microstructure. This work is focused towards the development of nanostructured yttria-stabilized hafnia using physical vapor deposition (PVD) technique and investigation of their structural and thermal properties.