Clinical studies to date reported high survival rates with fixed dental prosthesis (FDPs) made of yttria partially stabilized zirconia (Y-TZP). Yet, the veneering ceramic layer that is responsible for the final optical outcome and anatomy of the FDP, with lower mechanical properties than Y-TZP, continues to exhibit high chipping rate. This clinically undesirable situation, which is in fact the failure of the system, may interfere with appearance and function and be costly in cases of early failures. Since understanding the factors related to veneer ceramic chipping may diminish such clinical failures, this review presents information on the mechanical and microstructural characteristics of veneering ceramics, challenges posed onto this material in the oral environment, mechanisms of generation of thermal residual stress profiles during cooling in bilayered FDPs, and process-related issues to circumvent chipping.