During high temperature service, a series of microstructure and phase evolutions occur in thermal barrier coatings (TBCs), which result in degradation of thermal insulation and durability. In this study, the sintering behavior of an air plasma sprayed 8 wt% YSZ coating deposited using electro-sprayed nanostructured particles (ESP) as feedstock powder was investigated and compared with conventional YSZ coating deposited using hollow spherical powders (HOSP). Due to the distinct asymmetric porous structure formed by nanosized YSZ particles, the ESP powder was partially melted in the plasma jet during the deposition, which resulted in the formation of a nanostructured coating that consisted of porous nanozones and dense zones. The ESP coating not only shows a significantly lower initial thermal conductivity of 0.70 W/mK, but also exhibits a stronger sintering resistance in terms of phase stability and thermal insulation compared to the conventional coating. When subjected to prolonged sintering at 1400 degrees C for 128 hours, the thermal conductivity of the ESP coating would gradually increase to about half that of the HOSP coating at 1.29 W/mK. These differences are ascribed to the interaction among different sintering behavior between nanozones and dense zones.