The performance of the ceramic powder has a great influence on the ceramic coating prepared by the plasma spraying process. The inductive plasma spheroidizingIPS technology can greatly improve the physical properties such as density and fluidity of the ceramic powder, and is an effective method for improving the spraying performance of the ceramic powder. In this paper, the Yttria stabilized zirconia (YSZ) ceramic powder prepared by the typical spray drying method was heat treated by IPS process. The properties of bulk density, fluidity, particle strength and particle size distribution of the powder before and after different IPS-treated were studied. These YSZ ceramic powders were prepared into coatings by atmospheric plasma spraying process, and the properties such as micro-morphology and hardness of the coating were compared.