A physically-based computational model is developed to predict the damping behavior of oxide thermalbarrier coating systems. The constitutive damping model is derived from the theory of point defect relax-ation in crystalline solids and implemented within a finite element framework. While oxide coatings havebeen primarily employed as thermal barriers for gas turbine blades, there is a growing interest in devel-oping multifunctional coatings combining thermal protection and damping capabilities. The direct fre-quency response method, as well as the modal strain energy method, have been implemented toevaluate the functional dependance of damping on temperature and frequency. Numerical results are val-idated through the limited experimental data available in the literature, and new results are presented toillustrate the effects of different topcoat oxides. The paper also illustrates how the developed methodol-ogy enables the damping capacity under different vibrational modes to be predicted, and to estimate the sensitivity of the design for varying geometrical parameters. Finally, the computational model is applied to investigate the damping performance of an oxide-coated turbine blade