The microstructures of three atmospheric plasma-sprayed (APS) Al2O3-ZrO2 coatings were investigated using x-ray diffraction, scanning electron microscopy, and transmission electron microscopy. The differences in the microstructures of the three Al2O3-ZrO2 coatings, including their phase compositions, cracks, pores, grain sizes, and solid solutions, were analyzed in detail. A close relationship was observed between the thermal conductivities of the coatings and the microstructures, and the Al2O3-YSZ coatings with more spherical pores, fewer vertical cracks, and finer grains exhibited the lowest thermal conductivity of 0.91 W/m center dot K. Compared with YSZ coatings, Al2O3-YSZ coatings can exhibit lower thermal conductivity, which may be attributed to the formation of an amorphous phase, smaller grains, and Al2O3-YSZ solid solution.