A NiO-Y2O3 stabilized ZrO2 (YSZ) composite particles for solid oxide fuel cell (SOFC) anode was fabricated by advanced mechanical method in dry process. The processed powder achieved better homogeneity of NiO and YSZ particles, where submicron NiO particles were covered with finer YSZ particles. A Ni-YSZ cermet anode fabricated from the NiO-YSZ composite particles showed the porous structure in which Ni and YSZ grains of less than several hundred nano-meter as well as micron-size pores were uniformly dispersed. The cermet anode achieved high electrical performance at low temperature operation (<800degreesC). It was led by larger electrochemical area successfully obtained by the excellent structure of the anode. (C) 2003 Elsevier B.V. All rights reserved.