Insulation coating is often applied to time domain reflectometry (TDR) soil moisture sensors to reduce the conduction loss of energy. However, because of low dielectric constants of common plastic insulation materials, sensitivity is reduced, and the measurements are strongly dependent on coating thickness. Analytical studies clearly showed that these unwanted features could be mitigated if a high dielectric material is used for coating. An epoxy-ceramic nanocomposite was selected as a high dielectric insulation material because of its high dielectric constant and high adhesion. Experimental work using this composite indicated that the material has the potential to be used as a high dielectric coating for TDR soil moisture probes. On the basis of the results of these analytical and experimental studies a framework for designing an improved epoxy-ceramic composite for coating TDR soil moisture sensors is suggested.