Scandia, gadolinia, and ytterbia co-doped zirconia (SGYZ) ceramic powder was synthesized by chemical co-precipitation and calcination processes for application in thermal barrier coatings to promote the durability of gas turbines. The ceramic powder was agglomerated and sintered at 1150 °C for 2 h, and the powder exhibited good flowability and apparent density to be suitable for plasma spraying process. The microstructure, morphology and phase stability of the powder and plasma-sprayed SGYZ coatings were analyzed by means of scanning electron microscope and x-ray diffraction. Thermal conductivity of plasma-sprayed SGYZ coatings was measured. The results indicated that the SGYZ ceramic powder and the coating exhibit excellent stability to retain single non-transformable tetragonal zirconia even after high temperature (1400 °C) exposure for 500 h and do not undergo a tetragonal-to-monoclinic phase transition upon cooling. Furthermore, the plasma-sprayed SGYZ coating also exhibits lower thermal conductivity than yttria stabilized zirconia coating currently used in gas turbine engine industry. SGYZ can be explored as a candidate material of ultra-high temperature thermal barrier coating for advanced gas turbine engines.