Yttria partially stabilized zirconia (ZrO2)x(Y2O3)½-x has been investigated to understand accommodation of excess oxygen into its structure. ZrO2 powder with 8 wt% Y2O3 additions was treated in 30 vol% H2O2 solution to promote oxidation of the material. A new Raman peak was observed after treatment at 840 cm−1, consistent with previous reports of solid state peroxide ions (O22−). This was corroborated using atomic scale simulation based on density functional theory; these also highlighted the near-zero solution enthalpy for excess oxygen in the monoclinic structure via the formation of a peroxide ion defect.