An ideal cathode for proton ceramic fuel cells (PCFCs) should have superior oxygen reduction reaction activity, high proton conductivity, good chemical compatibility with electrolyte, and sufficient stability; thus rational design of the electrode material is needed. Here, by taking advantage of the limited solubility of nickel in perovskite lattice, we propose a new dual phase cathode developed based on nickel doping manipulation strategy. We rationally design a perovskite precursor with the nominal composition of Ba(Co0.4Fe0.4Zr0.1Y0.1)0.8Ni0.2O3-δ (BCFZYN0.2). During high-temperature calcination, a nanocomposite, composed of a B-site cation deficient and nickel-doped BCFZY perovskite main phase and nanosized NiO minor phase, is formed. The NiO nanoparticles effectively improve the surface oxygen exchange kinetics and the B-site cation deficiency structure enhances proton conductivity, thus leading to superior ORR activity of BCFZYN0.2. Furthermore, a low thermal expansion coefficient (15.3×10-6 K-1) is achieved, ensuring good thermomechanical compatibility the electrolyte. A peak power density of 860 mW cm-2 at 600°C is obtained from the corresponding PCFC, and the cell operates stably for 200 h without any significant degradation. The proposing strategy, by providing a new opportunity for the development of highly active and durable PCFC cathodes, may accelerate the practical use of this technology.