Dense YSZ thin film with a thickness from 2 to 15 µm on porous Ni-YSZ anode support was fabricated by a novel powder coating process. The performance of the cell with a composite of Sm0.8Sr0.2CoO3- YSZ (40 wt.%) as cathode was examined over a temperature range from 550 to 800 °C, using H2 -3% H2O as fuel and air as oxidant. The maximum power density of the cells was over 300 mW/cm2 at 800 °C. The open circuit voltage of the cells reached 1.1 V at 750 °C, illustrating the full dense of the YSZ electrolyte. The anode-electrolyte interfacial resistances were negligible in comparison with that of cathode-electrolyte, indicating the good coherency of the YSZ electrolyte to the anode support. These results demonstrate the reliability of this novel process for thin electrolyte SOFCs.