Nanocrystal stabilized tetragonal zirconia (t-ZrO_2) powders were prepared through a soft combustion route, with yittrium^<3+> as stabilizing agent and niobium^<5+> for conducting properties. The precursor solutions were prepared from zirconyl nitrate, yttrium nitrate and niobium nitrate. Glycine was used as the fueling agent. The mixed solutions were soft combusted at low temperature and then calcined to produce nanocrystalline powders. Nb-Doped t-ZrO_2 was produced with average particle size ranging from 15 to 30 nm with a band gap of 2.17 eV.