The industrial manufacturing of YSZ products can be summarized as a three step process: a) hydrolysis of zirconyl chloride and mixing of other solutions, b) precipitation, and c) calcination. The addition of ammonia or OH- is essential in the precipitation process. However, a strong agglomeration was observed in the results of an ammonia or OH- addition. Thus, it is necessary to disperse the powders smoothly in order to improve the mechanical strength of YSZ. In this study, YSZ was synthesized using the urea stabilizer and hydrothermal method. YSZ powders were synthesized using a hydrothermal method with Teflon Vessels at $180^{circ}C$ for 24 h. The mole ratio of urea to Zr was 0, 0.5, 1, and 2. The crystal phase, particle size, and morphologies were analyzed. Rectangular specimens ($33;mm{ imes}8;mm{ imes}1{pm}0.5;mm$) for three-point bend tests were used in the mechanical properties evaluation. The crystalline of YSZ powders observed a tetragonal phase in the sample with a ratio of Zr:urea = 1:2 addition and a hydrothermal reaction time of 24 h. The average primary particle size of YSZ was measured to be 9 nm to 11 nm. The agglomerated particle size was measured from 15 nm to 30 nm. The three-point bending strength of the YSZ samples was 142.47 MPa, which is the highest value obtained for the Zr:urea = 1:2 ratio addition YSZ sample.