Component with repaired thermal barrier coating

A method of repairing a thermal barrier coating on a component designed for use in a hostile thermal environment, such as turbine, combustor and augmentor components of a gas turbine engine. The method more particularly involves repairing a thermal barrier coating on a component that has suffered localized spallation of the thermal barrier coating. After cleaning the surface area of the component exposed by the localized spallation, a ceramic paste comprising a ceramic powder in a binder is applied to the surface area of the component. The binder is then reacted to yield a ceramic-containing repair coating that covers the surface area of the component and comprises the ceramic powder in a matrix of a material formed when the binder was reacted. The binder is preferably a ceramic precursor material that can be converted immediately to a ceramic or allowed to thermally decompose over time to form a ceramic, such that the repair coating has a ceramic matrix. The repair method can be performed while the component remains installed, e.g., in a gas turbine engine. Immediately after the reaction step, the gas turbine engine can resume operation during which the binder is further reacted/converted and the strength of the repair coating increases.