In this study, 8 mol% yttria-stabilized cubic zirconia (8YSZ) powder as a matrix material and 0-15 wt.% La2O3 powder as an additive were used to determine the effect of La2O3 addition and its amount on the phase stability, microstructure, sintering, and mechanical properties of 8YSZ. Colloidal processing was used to mix the powders uniformly and to obtain a homogenous microstructure. XRD results showed the existence of only a cubic crystal structure for 1 and 5 wt.% La2O3 addition amounts. However, La2Zr2O7 with a hexagonal and cubic crystal structure was observed in 8YSZ specimens doped with 10 and 15 wt.% La2O3. Further, up to 5 wt.% La2O3 was completely dissolved in the crystal structure of the specimens; however, above 5 wt.%, La2O3 reacted with 8YSZ at high temperatures and formed pyrochloric La2Zr2O7. Grain size measurements revealed that the grain size of 8YSZ increased up to 1 wt.% La2O3 addition, and then decreased beyond this amount. The hardness and fracture toughness of 8YSZ decreased and increased, respectively, with the increasing La2O3 amount.