Introduction: Yttria stabilized zirconia (YSZ) has been under consideration due to its desired properties for preparing dental restorations. The aim of this research was to produce the YSZ nano powder via sol-gel rout.Materials and methods: The present research was an experimental study and in vitro evaluation. Appropriate amount of zirconium oxide chloride, ZrOC12.8H2O, and yttrium nitrate, Y (NO3)3.6H2O, to reach 3mol% yttrium oxide in final product, were mixed in anhydrous ethanol ona magnetic stirrer. After drying the obtained gel at 50oC, it was calcined at 600oC for 1, 2 and 3hours. Phase identification, particle size and distribution determination, functional group identification and micro structural investigation were performed using XRD, SEM, TEM and FTIR techniques.Results: Results revealed that the tetragonal zirconia phase nano powder has been obtained. Crystallite size of the powder was about 20 nm and the size of particles was about 80 nm. The optimum temperature and time for calcimine process was 600ºC and 3 hours, respectively.Conclusion: The obtained Yttria stabilized zirconia with special characteristics duo to nano scale structure, could be a desired biomaterials for preparing dental restorations such as inlay, on lay, post and core, crown, and bridges in dentistry.