Theoretical analysis of solid oxide fuel cells (SOFCs) using two-layer, composite electrolytes consisting of a solid electrolyte of a significantly higher conductivity compared to zirconia (such as ceria or bismuth oxide) with a thin layer of zirconia or thoria on the fuel side is presented. Electrochemical transport in the two-layer, composite electrolytes is examined by taking both ionic and electronic fluxes into account. Similar to most electrochemical transport phenomena, it is assumed that local equilibrium prevails. An equivalent circuit approach is used to estimate the partial pressure of oxygen at the interface. It is shown that thermodynamic stability of the electrolyte (ceria or bismuth oxide) depends upon the transport characteristics of the composite electrolyte, in particular the electronic conductivity of the air-side part of the electrolyte. For example, the greater the electronic conductivity of the air-side part of the electrolyte, the greater is the interface partial pressure of oxygen and the greater is the thermodynamic stability. The analysis shows that it would be advantageous to use composite electrolytes instead of all-zirconia electrolytes, thus making low-temperature (~600-800~ SOFCs feasible. Implications of the analysis from the standpoint of the desired characteristics of SOFC components are discussed.The current SOFC technology is based on stabilized zirconia electrolytes which are stable in fuel (reducing) environment. The ionic conductivity of zirconia, however, is too low below about 950~ Consequently, most of the SOFCs are operated at -1000~ It is well known that the efficiency of a fuel cell is greater at lower temperatures. In this regard, the need for the development of solid electrolytes with substantially higher ionic conductivity compared to zirconia has been long recognized. Several researchers have demonstrated that CeO2 doped with alkaline earth or rare earth oxides exhibits ionic conductivity up to two orders of magnitude higher than zirconia at comparable temperatures (1-9). Ceria, however, exhibits a significant electronic conduction which is undesirable. Moreover, the electronic transference number increases in the presence of reducing atmospheres. Theoretical analysis of fuel cell operation with mixed conducting solid electrolytes has been conducted by Ross and Benjamin (10)