Bismuth oxide (Bi2O3)-doped yttria-stabilized zirconia (YSZ) were prepared via the solid state reaction method. X-ray diffraction and electron diffraction spectroscopy results indicate that doping with 2 mol% Bi2O3 and adding 10 mol% yttria result in a stable zirconia cubic phase. Adding Bi2O3 as a dopant increases the density of zirconia to above 96%, while reducing its normal sintering temperature by approximately 250 °C. Moreover, electrical impedance analyses show that adding Bi2O3 enhances the conductivity of zirconia, improving its capability as a solid electrolyte for intermediate or even lower temperatures.