The physical and mechanical properties of yttria stabilized zirconia ͑YSZ͒ coatings deposited by the electron beam physical vapor deposition technique have been investigated by varying the key process variables such as vapor incidence angle and sample rotation speed. The tetragonal zirconia coatings formed under varying process conditions employed were found to have widely different surface and cross-sectional morphologies. The porosity, phase composition, planar orientation, hardness, adhesion, and surface residual stresses in the coated specimens were comprehensively evaluated to develop a correlation with the process variables. Under transverse scratch test conditions, the YSZ coatings exhibited two different crack formation modes, depending on the magnitude of residual stress. The influence of processing conditions on the coating deposition rate, column orientation angle, and adhesion strength has been established. Key relationships between porosity, hardness, and adhesion are also presented.