Yttria stabilized cubic zirconia (YSZ) ceramic powders are prepared by microwave-hydrothermal (MH) treatment (200°C, 194 psi, 30 min) using ZrO(NO3)2·xH2O and YCl3 as starting precursors and KOH as mineralizer. Solutions of ZrO(NO3)2·xH2O (0.018 M) and YCl3 (0.002 M) were mixed in appropriate proportions and were added to 1.2 M KOH solution. Resulting mixture was treated in specially designed vessels, under high pressure using microwave accelerated reaction system (MARS-5). The resultant precipitates are characterized by XRD, IR, EDAX, BET and SEM techniques. The results showed that the as-precipitated particles consisted of YSZ having cubic fluorite structure and thermal stability up to 800°C. The surface area of the microwave-hydrothermally prepared powder at 200°C (194 psi), 30 min was found to be 125 m2g-1. The SEM photograph shows agglomerated YSZ particles having varied size distribution (0.2-3 μm). The cubic phase is obtained at a temperature/pressure and time as low as 125°C/18 psi and 5 min, respectively. © 2001 Published by Elsevier Science B.V.