A process for forming a coating on a substrate, such as a turbine engine component, is provided. The process comprises the steps of: providing a first rare earth oxide stabilized zirconia composition; providing a second composition selected from the group consisting of a yttria stabilized zirconia composition, a ceria stabilized zirconia composition, alumina, a chromia-alumina composition, a gadolinia stabilized zirconia composition, and mixtures thereof; blending the first rare earth oxide stabilized zirconia composition with the second composition to form a blended powder; and depositing the blended powder onto the substrate. Articles having the coating formed from the above process are also described.