Failure of air plasma sprayed (APS) thermal barrier coatings (TBCs) with a double-layered bond coat was investigated. The bond coat consists of a dense layer near the substrate side and a porous layer on the surface. Both were made of NiCoCrAlY alloy and deposited using high velocity oxygen-fuel technique. After thermal cycling, a large amount of internal oxides formed (up to 45% in volume fraction), introducing a significant volume expansion both in in-plane and perpendicular direction in the bond coat. However, the presence of the ceramic top coat can suppress the bond coat in-plane swelling thus lowering the internal oxidation rate.Compared with the fully dense bond coat, the interface roughness of the porous bond coat increases significantly when internal oxidation occurs. There is a strong correlation between the internal oxidation and the interface roughness. In addition, both the beneficial and detrimental effects of internal oxidation on TBC failure were discussed. It is proposed that a fully dense bond coat with a proper surface roughness should have a longer thermal cycling