Phase stability and isothermal phase transformation during gaging at 25$0^{circ}C$ were investigated in yttria stabilized zirconia powders prepared from hydrolysis of zirconium isopropoxide. The stability of tetragonal phase at room temperature in zirconia powder was decreased with calcination temperature but increased with the addition of yttria content. During aging at 25$0^{circ}C$ in humid atmosphere isothermal phase transformation occurred in tetragonal zirconia powder stabilized by constraint effect not by alloying effect and grain size effect. Many twins and microcrackings were found in transformed monomlinic zirconia particles