Effect of La2O3 addition on thermal conductivity and high temperature stability of YSZ coating produced by EB-PVD was investigated. La2O3 was selected as an additive because it had a significant effect on suppressing densification of YSZ. The developed coating showed extremely low thermal conductivity as well as high resistance to sintering. Microstructural observation revealed that the coating had fine feather-like subcolumns and nanopores, which contributed to limit thermal transport. These nanostructures were thought to be formed by suppressing densification during deposition.