Gadolinium zirconate, $Gd_2Zr_2O_7$, is one of the most promising candidates for replacing yttira-stabilized zirconia (YSZ) in thermal barrier coating (TBC) applications due to its low thermal conductivity and chemical stability at high temperature. In this study, rare-earth zirconate ceramics in the $GdO_{1.5}-ZrO_2$ system with reduced gadolinia contents were fabricated via solid-state reaction as well as hot-pressing at $1800^{circ}C$. The phase formation, microstructure, and thermo-physical properties of these oxides were examined. The potential application of $GdO_{1.5}-ZrO_2$ ceramics for TBC was also discussed.