Zirconia powder coated with alumina was prepared by hydrolysis of alumina butoxide. The coated powder was obtained by a hydrolysis reaction between the adsorbed water on the surface of zirconia particles and aluminum sec-butoxide. Amorphous aluminum hydroxide was uniformly coated on the surface of zirconia particles with the thickness of about 30 nm. The shape and distribution of aluminum hydroxide was varied with an existence of surfactant. The coated layer of aluminum hydroxide consists of the fine particle size, and the zirconia powder coated by alumina hydroxide have the large specific surface area of 120 $m^2$/g, compared with that of starting zirconia powder.