The suspension plasma spray (SPS) technique has been used to obtain dense Y 2 O 3 coatings and to overcome the drawbacks of the conventional air plasma spray (APS). SPS uses suspensions containing micrometer or sub-micrometer sized powders dispersed in liquid media. In this study, microstructure developments and mechanical properties have been investigated as functions of particle size of source material and plasma processing parameters such as plasma power and stand-off distance. The microstructure of the coating was found to be highly related to the particle size and the plasma processing parameters, and it was directly reflected in the hardness and the adhesion strength. When fine powder (BET 16.4 m 2 /g) was used as a raw material in the suspension, there was, with increasing stand-off distance, a change from a dense structure with a slightly bumpy surface to a porous structure with a cauliflower-like surface. On the other hand, when a coarse powder (BET 2.8 m 2 /g) was used, the coating density was lower, with microscopic splats on the surface. Using fine Y 2 O 3 powders, the coating layer with an optimum short stand-off distance showed a high hardness of approximately 90% of that of sintered Y 2 O 3 and an adhesion strength several times higher than that of the coating by conventional APS.