The isothermal and cyclic corrosion behaviors of magnesia-stabilized zirconia in a LiCl-Li2O molten salt were investigated at 650 °C in an argon atmosphere. The weights of as-received and corroded specimens were measured and the microstructures, morphologies, and chemical compositions were analyzed by scanning electron microscopy, X-ray energy dispersive spectroscopy, and X-ray diffraction. For processes where Li is formed at the cathode during electrolysis, the corrosion rate was about five times higher than those of isothermal and thermal cycling processes. During isothermal tests, the corrosion product Li2ZrO3 was formed after 216 h. During thermal cycling, Li2ZrO3 was not detected until after the completion of 14 cycles. There was no evidence of cracks, pores, or spallation on the corroded surfaces, except when Li was formed. We demonstrate that magnesia-stabilized zirconia is beneficial for increasing the hot corrosion resistance of structural materials subjected to high temperature molten salts containing Li2O.