During the air plasma spray process large residual stresses form making the coating prone to delamination. Therefore, it is important to elucidate the mechanisms responsible for the high residual stresses. To determine an effective method to reduce the residual stresses present in the coating, heat treatments have been preformed to better understand the effects that a post-deposition heat treatment has on the microstructure and subsequent stress levels in the abradable coating. The microstructure and stress analyses techniques include x-ray diffraction, energy dispersive x-ray spectroscopy, and secondary electron microscopy. It was found, after analysis of the microstructure and residual stresses, that factors effecting the relief of stresses in the coating include a decrease of Si in solution and the formation of Si precipitates.