The degradation phenomena and thermal stability of 2.5Y-TZP at low-temperature were studied by means of XRD, Raman spectra and microstructural analysis. The degradation of heat-treated 2.5Y-TZP at 20$0^{circ}C$-20hr in air was observed on the TZP surface, be caused by the cracks generated from tlongrightarrowm transformation, and the cracks was propagated inside the polycrystalline body. The ZrO2 grain boundaries and grains near the crack were revealed as if these were diffused and dissolved. And it was also observed mlongrightarrowt transformation as the degraded TZP was refired at 140$0^{circ}C$, and it was thought to be the fact that the moisture in atmosphere during the aging process contributed to the degradation. The thermal stability of 2.5Y-TZP was improved dramatically with an addition of 3w/o CeO2 or a provision of high Y2O3 concentration on the TZP surface.