Infrared dome, located at the forefront of an infrared missile, is one of the main components in the missile. According to the requirements of its working environment, the infrared dome should have good optical, mechanical, and thermal properties. At present, the main materials for fabricating infrared domes on the mid-infrared missiles are MgF₂, sapphire, spinel, ALON, and nanocomposite ceramic. In this paper, we proposed a ZrO₂ nano infrared transparent ceramic dome stabilized by high strength rare earth oxides. The research on the characteristics of the ceramic proved that the material could be used in the mid-infrared missiles. Furthermore, the material was applied to the development of the infrared dome sample. The compatibility test and the simulated dynamic casting test of the sample at the service environment of a missile verified the performance of the material.