Nanopowders with luminescent properties are of great interest since low energy-consuming light source is still in demand. The main purpose of the work is to obtain luminescent material based on terbium doped zirconia, via coprecipitation route. Quality of nanopowder depends on many factors such as temperature and time of calcination, temperature of solution, concentration of precipitation agent, intensity of agitation, etc. The content of terbium in obtained ZrO2:Tb samples varied from 0,1 wt.% to 5 wt.%. Powders were prepared starting from solutions of Zr and Tb nitrates, using ammonia solution as coprecipitation agent. Corresponding metal hydroxides were precipitated at the pH value of 10, then filtered and washed with water. The residue was next dried at the temperature of 70oC, and ground in agate mortar. The effect of preparation conditions and of chemical composition on properties of obtained nanopowders was described. Phase composition was determined using X’Pert X-Ray diffractometer. SEM observations were performed using LEO 1530 scanning electron microscope. Multipoint BET measurements were performed using Micromeritics Gemini instrument. Density was measured using Micromeritics AccuPyc 1330 helium pycnometer. Crystallite size in obtained powders varied from 4 nm to few micrometers, depending on preparing method. It was concluded that precipitation conditions strongly affect resulting zirconia nanopowder.