Applying an environmental barrier coating (EBC) and a thermal barrier coating (TBC) on the next generation gas turbine structural materials such as silicon carbide matrix composites will lead to large stresses due to thermal expansion mismatch; thereby limiting the coating's effectiveness and lifetime. Nanostructured materials possess a large volume fraction of grain boundaries and are conjectured to partially relieve the strain in the coating structure. A Triple Torch Plasma Reactor (TTPR) was used to spray multi-layered TBCs consisting of a mullite EBC deposited either on a silicon carbide or a mullite substrate, a nano-phase partially stabilized zirconia coating (n-PSZ), and a yttria stabilized zirconia coating (YSZ) as the TBC. The nanostructure of the n-PSZ could be maintained during the deposition process. The coatings were heat treated at 1300°C and the change in microstructure and mechanical properties were analyzed using scanning electron microscopy (SEM), micro-indentation and scratch testing applied to the coating cross section. While a change in the microstructure was observed, in particular grain growth, the hardness and elastic modulus appeared to be little affected by the heat treatment giving a preliminary validation of the multilayer concept.