Microstructural features and ionic conductivity of div alent(Mg2﹢)and trivalent(Gd2﹢ )cations co-doped ceria electrolyte system Ce0.8-хGd0.2MgxO1.9-xwere investigated by scanning electron microscopy(SEM)and AC impedance analysis.The experimental results exhibit that addition of MgO to GDC reduces the average binding energy of GDC by decreasing the energy barrier of oxygen ion migration in ceria matrix and the ionic conductivity of 2 mol%magnesium doped GDC(0.018 S/cm)is higher than that of GDC matrix at 650°C(0.0105 S/cm) . Co-doping Mg2﹢and Gd3+ is found to increase the ionic conductivity of ceria and hence decreases the operation temperature as well as the cost of solid oxide fuel cell(SOFC).