Reconstituted nanostructured and conventional yttria partially stabilized zirconia (YPSZ) coatings were deposited by atmospheric plasma spray. The tribological properties of the coatings against 100C6 steel were evaluated with a ball-on-disc configuration under dry friction conditions at room temperature. Microstructure and the phase composition of the powders and the coatings were examined using SEM, optical microscope (OM) and X-ray diffraction (XRD). Microhardness, Young’s modulus and fracture toughness of coatings were measured by indentation test. Results showed that the wear resistance of the coatings produced using the nanostructured powder is improved compared with the coating produced using the conventional powder. The wear rates of nanostructured zirconia coatings are about four-fifths of those of conventional counterparts under a load of 5 N. The wear mechanism is also discussed.