In this study we aims to evaluate the effects of 1/3 mol% Co3O4 addition on the reaction, microstructure development, resultant electrical properties, and especially the bulk trap and grain boundary properties of ZnO-Bi2O3-Sb2O3 (Sb/Bi=2.0, 1.0, and 0.5) system (ZBS). The samples were prepared by conventional ceramic process, and characterized by XRD, density, SEM, I-V, impedance and modulus spectroscopy (IS & MS) measurement. In addition of Co3O4 in ZnO-Bi2O3-Sb2O3 (ZBSCo), the phase development, density, and microstructure were controlled by Sb/Bi ratio. Pyrochlore on cooling was reproduced in all systems. The more homogeneous microstructure was obtained in ZBSCo (Sb/Bi=1.0) system. In ZBSCo, the varistor characteristics were improved drastically (non-linear coefficient α=23∼50) and somewhat sensitive to ambient oxygen with temperature.