Abstract <p>This study investigated multi-layered thermal barrier coatings deposited by atmospheric plasma spraying for improved performance compared to a single-layered Sm₂Zr₂O₇ (SZO) coating. Two novel designs were evaluated: a yttria-stabilized zirconia (YSZ) intermediate layer and a functionally graded coating with variable YSZ/SZO ratios. Vickers microhardness revealed a uniform 22% increase for all coatings after heat treatment. Functionally graded YSZ/SZO coatings displayed a significant 23% reduction in coefficient of friction compared to the YSZ/SZO double layer coating at room temperature. While heat treatment slightly increased wear depth in functionally graded coatings, they emerged as the most promising candidate due to their improved mechanical strength and low coefficient of friction, suggesting their potential for enhanced durability and thermal barrier performance.</p>