Niobia (1 mol. %) doped Ceria Stabilized Zirconia (NbCSZ) powders were synthesized using a co-precipitation method. The synthesized powders were uniaxially compacted and sintered in air. The two-step sintering method was adopted to sinter the samples, and the sintering schedule was optimized based on density, grain size, the phase present, and the hardness of the sintered sample. It was observed that the two-step sintering method effectively suppressed the grain growth of NbCSZ samples and helped in achieving a finer grain size of 1.57 μm along with the hardness of 1195 HV10 and optimum fracture toughness value 6.20 MPa m1/2. The Low-Temperature Degradation (LTD) behavior of the sintered samples was estimated through an accelerated hydrothermal aging test, which revealed that the samples are highly resistant to LTD and shown no phase change even after 150 h of study. Moreover, the cytocompatibility of the NbCSZ was tested by culturing MG63 cells on the samples for 7 days. The NbCSZ was found to be highly biocompatible as evident from cell viability and metabolic activity assay. © 2020 Elsevier Ltd and Techna Group S.r.l.