Abstract. Electrical and thermal properties of Bi-doped Pr 0·7 Sr 0·3 MnO 3 (PSMO) compounds are reported here. It is observed that Bi-doped PSMO compounds follow variable range conduction mechanism. Specific heat, thermal conductivity and thermo-power measurements show that larger Bi-ion, in place of smaller Pr ion, enhances their transition temperatures (T MI , T C , T CP ). Thermo-power measurements further strengthen our conclusion for the presence of magnetic polaron, generated due to hybridization of Bi 3+ -6s 2 and O 2− -2p orbital and polaronic conduction mechanism.