The hydrothermal synthesis of nanocrystals in the ZrO2-In2O3-H2O system is investigated kinetically. The presence of indium hydroxide results in an increase in the dehydration temperature of this system. The size of nanocrystals is equal to 20–30 nm and virtually does not depend on the temperature and time of hydrothermal treatment or on the type of crystalline modification of ZrO2. An increase in the synthesis temperature leads to an increase in the fraction of the monoclinic zirconia modification.