A high demand for materials based on oxide nanoceramic compositions for various applications in stomatology has been observed in the past decade. Special attention has been given to the ceramic nanocompositions containing zirconium dioxide stabilized as the tetragonal structure by yttrium a and cerium (t-ZrO2) oxides that are known to possess a variety of unique physico-mechanical properties. The t-ZrO2-based ceramic meets the requirements for the manufacture of dental restorations as stipulated in the international standard ISIO 13356-1997. Relevance of the problem. The development of the technology for the production of the cheap chemically pure zirconium dioxide powder in this country would contribute to the reduction of the dependence of the stomatologists on the imported materials («Tosoh», «Sax IBS Ceramic Applications», «Zirkonzahn»). Aim. The objective of the present work was to develop the environmentally friendly and efficacious technology for the domestic production of the highly dispersed zirconium dioxide powder and nanoceramics for restoration dentistry. The secondary objective was to evaluate biological inertness of the nanocompositions from stabilized zirconium dioxide. Material and methods. The aqueous solutions of zirconium, yttrium, cerium nitrates and ammonia were used as the starting materials. The fetal bovine serum served as the biological medium. The following methods were employed in the study: X-ray phase analysis, differential thermal analysis, isothermal processing of the powders and compacts in a range of temperatures from 100 to 1400 degrees Celsius, transmission electron microscopy for the elucidation of the ceramic microstructure, measurements of the physico-mechanical properties of the ceramics, and cell counting in the hemocytometer with the use of a Nikon eclipse TS1000 inverted microscope. Results. A simple and cost-effective technology based on the chemical precipitation method has been developed for the production of highly dispersed powders of zirconium dioxide (t-ZrO2) in the tetragonal modification. The resulting precipitates were frozen at –25 degrees Celsius. Thus, the technological process comprised the four consecutive stages including precipitation, filtration, freezing of the sediment, and thermal treatment of the resulting xerogel at 600 degrees Celsius. Collectively, these procedures do not require high amounts of energy. All the stages of the proposed process are less labour-consuming as compared with the analogous foreign technologies, and their sequential implementation does not contaminate the final product. According to the preliminary estimation, its manufacturing cost is 15—20% lower than that of the imported analogs. The t-ZrO2 powders obtained by the proposed technology had the specific surface area of ~240 m2/g with the average size of crystallites ~6—8 nm. Sintering of the finished product occurred at temperatures ≤1350 degrees Celsius compared with 1500 degrees and higher using the foreign technologies which made it possible to obtain the dense t-ZrO2-based nanoceramic material (70—80 nm) with excellent physico-mechanical characteristics. The influence of H+ concentration on the t-ZrO2-based ceramic was studied in a wide range of pH values from 3 to 7 during as long a time as roughly700 hours. These observations give definitive evidence that various food stuffs including fruits, juices, carbonated beverages, and sour-milk products do not cause any changes in the structure and the colour of the t-ZrO2-based nanoceramic materials which therefore will retain their original appearance. The relevant in vitro studies have demonstrated biological inertness of the t-ZrO2-based nanoceramics with respect to the tissues of the oral cavity and their high potential as the materials for restorative dentistry. Conclusion. The technology described in the present article makes it possible to synthesize the chemically pure powders based on stabilized ZrO2 at rather lower temperatures and with the minimal energy consumption compared with their foreign analogs. These products provide an ideal material for manufacturing the highly reliable, safe, and aesthetically attractive dental restorations. Their application would make it possible to reduce the dependence of the Russian stomatologists on the imported materials for the same purpose and to improve the quality of the stomatological services to the European level.