The nanometer YSZ can be synthesized by a hydrothermal method. The experimental results of XRD, BET and TEM showed that the hydrothermal powder is pure cubic phase of Y2O3 stabilized ZrO2 with the crystallite size less than 10nm. Using the slurry directly, the YSZ film can be deposited on anode substrate by a dip-coating technique. The Field Emission Scanning Electron Microscope photographs approved that the film has been densified after sintered at 950°C for 5h. The pore diameter distribution experiment confirmed that there not exist aggregates in green film. The nanometer sized crystallite and no aggregates existence endow the YSZ green film with excellent sintering ability. Consequently, the YSZ film can be sintered below 1000°C for the first time.