Thermal spray processing has been used for a number of years to cost-effectively apply TBC`s for a wide range of heat engine applications. In particular, bond coats are applied by vacuum plasma spray or HVOF techniques and partially-stabilized zirconia top coats are applied by plasma spray methods. Thermal spray involves melting and rapid transport of the molten particles to the substrate, where high-rate solidification and coating build-up occur. It is the very nature of this melt processing that leads to the unique layered microstructure, as well as the apparent imperfections, so readily identified with thermal spray. Therefore, although the plasma spray of TBCs has been largely successful, it is clear that a major step forward in terms of reliability and performance can be gained by a fundamental understanding of the TBC microstructure with respect to the processing technology and operating environment.