Polycrystalline MgB2 samples with 0, 5, 10, and 20 wt% nano-Y-ZrO2 (YSZ) powder addition were prepared by short time, as little as several minutes, or long time in-situ reaction process. The phases, microstructures and flux pinning behaviors were characterized using X-ray diffractometry (XRD), Scanning Electron Microscopy (SEM), Transmission Electron Microscope (TEM) and Magnetic Measurements. Results indicated that nano-YSZ particles included in MgB2 grains. Samples doped with 10wt% YSZ powders showed new record of critical current density Jc as high as 1×106 and 4×106A/cm2 in low magnetic fields at 30 and 20K, respectively. However, the Jc drops faster compared to that made by long time sintering samples. It is proposed that the improved Jc in low fields was due to the enhanced density of the sample, which was caused by the YSZ nano-particle inclusion.