Yttria-stabilized zirconia thermal barrier coating along with CoNiCrAlY bondcoat was deposited using air plasma spray on Inconel-X750 superalloy. The coated samples were exposed at 950 °C in a mixture of Na2SO4 and V2O5. The exposed specimens were investigated using XRD and SEM. The formation of spinel and perovskite structures was revealed at the interface of topcoat and the bondcoat. Further, the chemical composition profile of all samples helped to analyze the diffusion behavior of different constituent elements of bondcoat and substrate. XRD analyses of the samples confirmed the phase transformation of the tetragonal zirconia into monoclinic zirconia and yttrium vanadate. The shift of high angle peaks indicated lattice distortion, which was directly related to the stresses in the coating.