The effect of the addition of the nano size $Y_2O_3$ powder on the microstructurte and superconducting properties of YBCO thin film deposited on LAO single crystalline substrate by TFA-MOD method was studied. Nano size $Y_2O_3$ powder was added to the stoichiometric precursor solution with a cation ratio of Y : Ba . Cu = 1 : 2 : 3 prepared using TFA as chelating agent. Precursor solutions with and without $Y_2O_3$ addition were coated on $LaAlO_3(100)$ single crystalline substrates by dip coating method. Calcination and conversion heat treatments were performed in controlled atmosphere containing moisture Current carrying capacity(Jc) of YBCO film was enhanced about 50% by $Y_2O_3$ doping and it is thought to be due to the better connectivity of YBCO grains and/or the flux pinning by the $Y_2O_3$ particles embedded in YBCO grains.