Though　numerous　novel　materials　have　been　discovered　as　potential　materials　for　thermal　barrier　coatings,　their　either　relative　poor　strain　tolerance　or　high　thermal　conductivity　limited　their　further　application.　In　the　present　work,　a　NdAlO3-Nd2Zr2O7　composite　coating　is　prepared　by　air　plasma　spraying　process.　Glass　phase　appears　in　the　composite　coating　and　crystallizes　after　thermal　exposure　at　1000　degrees　C　for　5　h.　This　crystallization　process　leads　to　the　severe　reduction　of　the　thermal　expansion　rate.　Additionally,　thermal　conductivity　of　as-sprayed　NdAlO3-Nd2Zr2O7　coating　is　about　1.0　Wm(-1)　K-1　but　increases　to　1.7　Wm(-1)　K-1　after　heat　treatment.　A　quite　stable　nanostructured　thermal　barrier　coating　is　obtained　after　heat　treatment.　Remarkably,　the　NdAlO3-Nd2Zr2O7　composite　coating　exhibits　a　superior　microstructure　stability　that　the　average　grain　size　remains　less　than　100　nm,　175　nm,　and　250　nm　after　calcined　at　1100　degrees　C,　1200　degrees　C,　and　1300　degrees　C　for　more　than　100　h,　respectively.　The　fracture　toughness　of　NdAlO3-Nd2Zr2O7　composite　coating　is　one　of　the　highest　among　the　novel　thermal　barrier　coatings　owing　to　the　existence　of　super-fine　grains.　The　present　study　brings　some　new　insight　in　designing　advanced　stable　nanostructured　thermal　insulation　coatings.