Thermal barrier coatings (TBCs) are widely used in aerospace and aviation industries for materials required to withstand severe environments such as oxidation, hot-corrosion failure and CMAS (calcia-magnesia-alumina-silica) attack or vermiculite corrosion. This is particularly apparent in vermiculite, which can penetrate sand, volcanic ash and is the most destructive damage mechanism in the TBC system. Impurities from the desert environment such as calcia-magnesia-alumina-silica (CMAS) cause degradation of TBCs. In this research, CoNiCrAlY metallic bond coatings were deposited on Inconel 718 nickel based superalloy substrates with a thickness of around 100 mu m using a Cold Gas Dynamic Spray (CGDS) technique. Production of TBCs were carried out with deposition of YSZ ceramic top coating material using Electron Beam Physical Vapor Deposition (EB-PVD), with a thickness of around 200 mu m. The effect of CMAS with spreading naturally-occurring mineral (vermiculite) on TBC samples were investigated using scanning electron microscopy (SEM), energy dispersive spectroscopy (EDS) analysis and X-ray diffraction (XRD). The microstructure evolution of YSZ and failure mechanism of TBC were evaluated.