<p>Thermal barrier coatings system (TBC) systems are necessary to shield components used in high-thermal environments, such as gas turbines and aerospace systems. This review examines recent developments in surface engineering, coating structures, and methods for enhancing interfaces to ensure improved performance at elevated temperatures. It is concerned with the alterations in the microstructure, behavior of thermally grown oxide, and behavior of materials under repeated and steam-rich environments. In addition, new methods, including suspension plasma spraying, solution precursor plasma spraying, and nanostructured coatings, are mentioned, along with their weaknesses in terms of thermal stability over time. The authors combined their experimental insights to form microstructure-property-performance relationships. This review notes that the coupled effects of processing parameters, microstructure, and interfacial stability control the coating durability and provides future perspectives for next-generation TBC systems.</p> Graphical Abstract <p></p>