This paper presents the work on the development of ceramic coating processing. Nano-structured zirconia coating has been developed with functions; substrate temperature and oxygen gas change in chamber by electron beam physical vapor deposition (EB-PVD). The microstructure of the coating layer has been characterized with FE-SEM, and SEM. The crystalline phase of the coating layer has been also characterized with XRD. The zirconia coating by EB-PVD had not monoclinic zirconia phase as shown in XRD pattern and Raman spectra and the thickness of coating were quite homogeneous. The fracture microstructure of the coating layer for a thickness of ~15 μm showed columnar or non-columnar structure and had nano-structure with nano scaled grain as shown in micrograph by FE-SEM.