In this study, partially stabilized zirconia was synthesized using a chemical Y2O3 stabilizer and hydrothermal method. First, YCl3-6H2O and ZrCl2O-8H2O was dissolved in distilled water. Y-TZP (a Y2O3-doped toughened zirconia polycrystalline precursor) was also prepared by conventional co-precipitates in the presence of an excess amount of NH4OH solution under a fixed pH of 12. The Y-TZP precursors were filtered and repeatedly washed with distilled water to remove Cl- ions. ZrO2-Xmol%Y2O3 powder was synthesized by a hydrothermal method using Teflon Vessels at 180˚C for 6 h of optimized condition. The powder added with the Xmol%- Y2O3 (X = 0,1,3,5 mol%) stabilizer of the ZrO2 was synthesized. The crystal phase, particle size, and morphologies were analyzed. Rectangular specimens of 33mm×8mm×3 mm for three-point bend tests were used in the mechanical properties evaluation. A teragonal phase was observed in the samples, which contains more than 3 mol% Y2O3. The 3Y-ZrO2 agglomerated particle size was measured at 7.01μm. The agglomerated particle was clearly observed in the sample of 5 mol % Y2O3-ZrO2, and and the agglomerated particle size was measured at 16.4 um. However, a 20 nm particle was specifically observed by FE-SEM in the sample of 3 mol% Y2O3-ZrO2. The highest bending fracture strength was measured as 321.3 MPa in sample of 3 mol% Y2O3-ZrO2.