Nanosized 10 mol% MgO-doped ZrO2 powder was prepared via coprecipitation, followed by a washing-drying-calcining treatment. Water, ethanol, and a mixture of water and ethanol (volume ratio 1:1) were, respectively, used as solvents for precipitating and washing. These solvents had great influence on the dispersion of the nanopowders, and hence the sintering behavior in the corresponding ceramics. When ethanol was used, uniformly dispersed MgO-doped ZrO2 with a good sintering property was obtained. The function of ethanol was to weaken the hydrogen bonds between the adjacent nanoparticles that lead to formation of "hard agglomerates" at the first step when the hydroxide precipitate had just formed.