Cavitation erosion resistance of 8wt.% yttria stabilized zirconia has been investigated in specimens prepared by atmospheric plasma spraying and laser remelting post treatment. The results indicate that as-sprayed coatings involve defects such as primary cavities and initial micro cracks inside a particle and among the interfaces of particles. When the specimens are subjected to cavitation erosion, the micro cracks initiate and coalesce along with chip removals. Laser remelting produces a dense glazed layer with some cracks though the coatings. With the increasing of erosion time, large pieces are delaminated from coating-substrate interface leading to a significant mass loss. However, the resistance of laser remelted coatings to cavitation erosion is significantly improved when they are impregnated with epoxy by vacuum castable mounting. The relationship between cracks formed inside the laser remelted YSZ coatings and their damage mechanism under cavitation is discussed.