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A sol-gel like chemical method has been adopted for the preparation of nanostructured zirconia in pure and stabilized forms. X-ray diffraction analysis reveals that 3mol% Y 2 O 3 doped ZrO 2 exhibits both cubic and tetragonal phases rather than pure tetragonal phase as in the coarse grain 3mol% Y 2 O 3 -ZrO 2 . Differential thermal analysis and XRD patterns show that the crystallization is occurring at a slow rate. Impedance measurement for 12mol% Y 2 O 3 -ZrO 2 (cubic phase) sintered pellet shows an improved ionic conductivity than for coarse grain material.