In this study, NiO/YSZ composite powders were synthesized using hydrolysis on two solutions, one contains YSZ particles and Ni2+ ion, and the other contains NiO particles, Zr4+, and Y3+ ions, with the aid of urea. The microstructure of the powders and sintered bulks was further characterized using X-ray diffraction, scanning electron microscopy, and transmission electron microscopy. The results indicated that various synthesis processes yielded NiO/YSZ powders with different morphologies. The NiO precursors would deposit onto the surface of YSZ particles, and NiO-deposited YSZ composite powders were obtained. Alternatively, it was not observed that YSZ precursors deposited onto the surface of NiO particles, thus, a uniform powder mixture of fine NiO and fine YSZ particles was produced. After sintering and subsequent reduction, these powders would lead to the variations of Ni distribution in the YSZ matrix and conductivity of cermets. Owing to the core-shell structure of the powders and the higher size ratio of YSZ and NiO particles, the conductivity of cermet with NiO-deposited YSZ powders containing 23 wt% NiO is comparable to those with a NiO/YSZ powder mixture containing 50 wt% NiO. (C) 2009 Elsevier B.V. All rights reserved.