Gd and Yb elements have high chemical stability, which can stabilize the solid solution in ZrO2. Gd2O3 and Yb2O3 have high melting points, and good oxidation resistance under extreme environments, stable chemical properties. Therefore, Gd2O3 and Yb2O3 were added to ZrO2 to stabilize oxides, improve the high temperature stability and effectively decrease the thermal conductivity at high temperature. In this work, 5% Yb2O3 and 5%, 10%, 15% Gd2O3 were doped in nano-ZrO2 powder by weight percentage as thermal barrier coating materials, andsintered at 1650℃ for 6h, 12h, 24h. The effects of Gd2O3 and Yb2O3 doping on the structure, density, thermal conductivity, hardness and fracture toughness of ZrO2 bulk materials were investigated. It was found that the density of the sintered bulk reached 96.89% at 1650℃ for 24h. With the increase of Gd2O3 addition, the thermal conductivity of the bulk decreased to the lowest thermal conductivity of 0.43W/(m•k) at 1100℃ with 15wt% Gd2O3 addition. Meanwhile, its hardness, elastic modulus fracture toughness increased to 15.06 GPa, 189.60 GPa, 7.822MPa•m0.5, respectively. The doping Gd2O3 and Yb2O3 in ZrO2 could not only effectively reduce the thermal conductivity but also improve the mechanical properties, which would contribute to improve the thermal barrier coatings’ performances furtherly.