Nickel-yttria stabilized zirconia (Ni-YSZ) cermet is the most commonly used anode in solid oxide fuel cells (SOFCs). The current article provides an insight into parameters which affect cell performance and stability by reviewing and discussing the related publications in this field. Understanding the parameters which affect the microstructure of Ni-YSZ such as grain size and ratio of Ni to YSZ, volume fraction of porosity, pore size and its distribution, tortuosity factor, characteristic pathway diameter and density of triple phase boundaries (TPBs) is the key to design a fuel cell which shows high electrochemical performance. Lack of stability has been the main barrier to commercialization of SOFC technology. Parameters influencing the degradation of Ni-YSZ supported SOFCs such as Ni migration inside the anode during prolonged operation are discussed. The longest Ni-supported SOFC tests reported so far are examined and the crucial role of chromium poisoning due to interconnects (ICs), stack design and operating conditions in degradation of SOFCs is highlighted. The importance of calcination and milling of YSZ on development of porous structures suitable for Ni infiltration is explained and several methods to improve the electrochemical performance and stability of Ni-YSZ anode supported SOFCs are suggested.