Tm doped Y2O3-ZrO2 (YSZ) powders and coatings are prepared in order to enhance the adaptation of the coating to thermal barrier coatings. The powders were prepared by chemical process and the coatings were deposited by plasma spraying method. The effects of plasma spraying parameters on the luminescent intensity of YSZ:Tm coating were investigated. It is found that yttria solid solutes into the powder completely when the aging time is over 15 h and Zr4+ concentration is 0.2 mol/L. The luminescent intensity of powder increases with the decrement of doped concentration of Tm. Plasma spraying distance and power have obvious influence on the luminescent intensity of YSZ:Tm coatings. The lower the spraying distance and power, the higher the luminescent intensity of coatings is in the present studying range.