Phase equilibria in the ZrO 2 -Nd 2 O 3 -Y 2 O 3 system at 1523-1873 K have been investigated by x-ray diffraction (XRD) and scanning electron microscopy combined with energy dispersive x-ray spectroscopy (SEM/EDX). Temperatures of phase transformations were determined by differential thermal analysis. Temperatures of invariant reactions in the ZrO 2 -Nd 2 O 3 system F = A + Pyr and H = F + A were determined as 1763 and 2118 K respectively and thermodynamic parameters of phases were re-assessed. Phase transformations in ternary systems were determined at 1732 K for composition ZrO 2 -48.46Nd 2 O 3 -5.38Y 2 O 3 (mol%) and at 1744 and 1881 K for composition ZrO 2 -79.09Nd 2 O 3 -2.75Y 2 O 3 (mol%). They were interpreted using XRD investigation before and after DTA as Pyr + B fi F, Pyr fi F and A fi B, respectively. The solubility of the Y 2 O 3 in pyrochlore phase was found to exceed 10 mol%. The thermodynamic parameters of the ZrO 2 -Nd 2 O 3 -Y 2 O 3 system were reassessed taking into account solubility of Y 2 O 3 in the Nd 2 Zr 2 O 7 pyrochlore phase (Pyr). It is assumed that Y 3+ substitutes Nd 3+ and Zr 4+ in their preferentially occupied sublattices. Ternary parameter was introduced into fluorite phase (F) for better reproducing of phase equilibria. Mixing parameters were reassessed for phase A (Nd 2 O 3 based solution), monoclinic phase B and cubic phase C (Y 2 O 3 based solution). The isothermal sections calculated for the ZrO 2 -Nd 2 O 3 -Y 2 O 3 system are in the reasonable agreement with experimental results.