Thermal barrier coatings (TBCs) manufactured with suspension plasma spray (SPS) are promising candidates for use in gas turbines due to their high strain tolerance during thermal cyclic fatigue (TCF). However, corrosion often occurs alongside thermal fatigue and coating durability under these conditions is highly desirable. The current study focuses on understanding the corrosion behavior and its influence on the thermal cyclic fatigue life of SPS TBCs. Corrosion tests were conducted at 780 °C using a mixed-gas (1SO2-0.1CO-20CO2-N2(bal.) in vol. %) for 168h. They were later thermally cycled between 100–1100 °C with a 1h hold time at 1100 °C. Corrosion test results indicated that the damage predominantly started from the edges and a milder damage was observed at the center. Nickel sulfide was observed on top of the top coat and also in the columnar gaps of the top coat. Chromium oxides were observed inside the top coat columnar gaps but close to the bond coat/top coat interface. They were believed to reduce the strain tolerance of SPS TBCs to an extent and also amplify the thermal mismatch stresses during TCF tests. This, together with a fast growth of alumina during the TCF, resulted in a significant drop in the TCF life compared to the standard TCF tests.