Yttria-stabilized zirconia (YSZ) coatings are fabricated via suspension plasma spray (SPS) for thermal barrier applications. Three different suspension sets are prepared by using a planetary mill as well as ball mill in order to examine the effect of starting suspension on the phase evolution and the microstructure of SPS prepared coatings. In the case of planetary-milled commercial YSZ powder, a deposited thick coating turns out to have a dense, vertically-cracked microstructure. In addition, a dense YSZ coating with fully developed phase can be obtained via suspension plasma spray with suspension from planetary-milled mixture of Y2O3 and ZrO2.