Reconstituted nanostructured partially stabilized zirconia (PSZ) feedstock powders were laser sintered under a range of laser processing parameters. Scanning electron microscopy (SEM) was applied to analyze the microstructure of the powders and sintered bulk. Microhardness of the samples was also tested by Vickers Microhardness tester. These results demonstrated that the microstructure of the samples exhibits a bimodal distribution which comprises molten and non-molten feedstock particles. It was found that feedstock maintained some of its nanostructure during laser sintering with relatively low laser power; whereas feedstock lost most of its initial characters with high laser power. It was also observed that Microhardness values have respect to the proportion of non-molten feedstock in those samples.