Homogeneous sphere NiO-8YSZ composite powder with a narrow size distribution is significant for the fabrication of high-quality solid oxide fuel cell (SOFC) anodes. In this study, spray drying was used to prepare evenly distributed and spherical NiO-8YSZ composite particles used for the fabrication of SOFC anodes. The result showed that the particles prepared with a solid content of 65 wt %, atomizing pressure of 60 kPa, drying temperature of 180 °C, and sintering at 1200 °C for 2 h exhibited the best holistic quality with high sphericity (90 % over 0.84), narrow size distribution (D10 = 27.78 μm, D90 = 45.49 μm), high collection rate (70 %), and low content of unstable phases. The influence of these main parameters on the quality of the prepared particles was investigated and discussed as well. It was found that the solid content and the atomizing pressure demonstrated opposite effects on the particle size, with the former showing a positive correlation and the latter showing a negative correlation. The drying temperature decided the agglomeration degree of the prepared powder, which was involved in the presence of grape-like particles. In addition, the collection rate appeared to be positively correlated with the solid content and the atomizing pressure. The atmospheric plasma sprayed coating fabricated using the sprayed-dried powder prepared with the optimal parameters demonstrated significantly improved micromorphology and structure when compared with the coating fabricated using the mechanical mixed composite powder, which proved the prominent advantage of the powder produced through this spray drying method. All these progresses were considered good instructions for the studies on powder granulation and its applications in manufacturing high-quality coating materials.