Sc(2)O(3) stabilized zirconia (ScSZ) was processed by combustion synthesis. X-ray diffraction was carried for analyzing the phase and crystallinity of the processed powder. The results indicate the effectiveness of the combustion synthesis process to produce nanocrystalline ScSZ from the precursor salts without any intermediate calcination step. Comparison with the X-ray diffraction pattern of a commercial 8YSZ sample showed that the process is also effective in producing the desired cubic fluorite phase. The powder was compacted and sintered to produce a dense electrolyte pellet. The sintering temperature was found to be considerably lower compared to conventional microcrystalline zirconia ceramics. The electrical conductivity of the ScSZ electrolyte was found to be higher compared to 8YSZ processed under same conditions. The Arrhenius plot of conductivity yielded two activation energies corresponding to low and high temperature regions. The activation energy of the 10ScSz electrolyte was found to be considerably lower than the 8YSZ sample. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.