Advanced ceramic coating technologies are commonly used as metal coatings for internal combustion engine components and aerospace application. The thermal barrier coatings are being applied to the engine components to increasing life and improve the performance of the engine. This experimental study is focused on advanced ceramic material of Zirconia stabilized with the yttrium oxide (Zirconia 80% wt and Yttia 20 % by weight) applied on the piston crown for analyzing the performance and emission characteristics of the diesel engine. By using ceramics coated piston crown, the brake thermal efficiency and specific fuel consumption were improved as compared to that of the piston without coating. Exhaust emission level of CO, UHC and NOx are also considerably reduced using advanced ceramic metal coating techniques.