This study utilizes the technique of self-assembly to fabricate arrays of nanoislands on (001)-oriented yttria-stabilized zirconia single crystal substrates with miscut of 10° toward <110> direction. These self-assembled nanostructures were annealed at 1100°C for 5h upon doping with 10mol% gadolinium-doped ceria (GDC) by powder-suspension based method. X-Ray diffraction result showed that the miscut substrate after doping GDC was in the cubic phase. Energy dispersive X-ray (EDX) illustrates that the nanopatterned material contains all the elements from the GDC source and yttria-stabilized zirconia (YSZ) substrate. It also demonstrates a higher surface roughness and a more hydrophilic surface. The nanostructured materials were subsequently used for an in vitro study using a human fetal osteoblastic cell line (hFOB). An improved spreading, enhanced cell proliferation and up-regulated alkaline phosphatase activity (ALP) were observed on the nanopatterned substrates compared to the control substrates. Calcium deposits, which were stained positively by Alizarin Red S, appeared to be more abundant on the nanopatterned surfaces on day 7. The overall findings suggest that post fabrication treatment with surface modification such as creating a nanostructure (e.g. nanopatterns) can improve biocompatibility.