Ceramic coating is used to reduce the friction and corrosion between the material. However, they have low surface hardness and wear resistance properties. The use of nanostructured YSZ represents an alternative for improving the performance of these coatings. In this study, Aluminium Alloy 2024 T351 material was chosen for coating YSZ(Yttria Stabilized Zirconia) by using EB - PVD(Electron Beam Physical Evaporation Method) technique. In this experiment, 90% of Zirconia was mixed with 10% of Yttria for coating the material at 2400oC. Depositing the different thicknesses of coating of 1µm and 5µm at the deposition temperature of 4000C and 5000C respectively. Microstructures of the coating were analyzed by SEM, XRD, AFM, and mechanical properties by Micro-hardness and Surface Roughness test. The result observed a very fine granular surface finish and prevent contamination by SEM images and the morphology of the coated surface shows the particles are uniformly distributed over the aluminum alloy. The XRD result shows when the deposition temperature increases the crystallite size of YSZ increases thus further increasing the hardness values respectively.