A thermal barrier coating for a component includes an insulating layer applied to a surface of a substrate. The insulating layer comprises a plurality of ceramic microspheres. A sealing layer is bonded to the insulating layer. The sealing layer is non-permeable such that the sealing layer seals against the insulating layer. A method for applying a thermal barrier coating to a surface of a substrate of a component includes providing a plurality of ceramic microspheres and applying the plurality of ceramic microspheres to the surface of the substrate. At least one heat treatment is applied to the plurality of ceramic microspheres on the surface of the component to create an insulating layer on the surface of the substrate.