Novel compositions of Nd 3+ and Dy 3+ codoped c e r i u m o x i d e a c c o r d i n g t o t h e s y s t e m o f Ce 0.8 Nd x−y Dy y O 2−{x−y/2+y} (x = 0.2; y = 0.04, 0.08, 0.1) have been synthesized by a simple sol−gel method and studied as electrolytes for intermediate-temperature solid oxide fuel cells (IT-SOFCs). Thermal, microstructural, optical, and electrical properties have been enhanced to different extents by the addition of Nd 3+ and Dy 3+ ions in cerium lattice, in particularly Dy 3+ ions because of their low ionic radius mismatch. Thermogravimetric/differential scanning calorimetric (TG/ DSC) analysis exhibited a small weight loss and high thermal stability in the intermediate temperature range (400−800 °C). The addition of Dy 3+ ions stabilized the cubic fluorite structure, which is confirmed from X-ray diffraction (XRD) studies. Lattice parameter expansion and contraction have been observed on account of their ionic radii trend. The formation of cubic fluorite structure has been confirmed by high-resolution transmission electron microscopy (HRTEM) along with XRD studies. Addition of Dy 3+ ions acts as an oxygen vacancy generator that increases the oxygen vacancy concentration and efficient conversion of Ce 4+ to Ce 3+ , which are affirmed with optical studies. Complex impedance analysis was performed at the temperature range from 300 to 600 °C in air atmosphere. Compositions of the system Ce 0.8 Nd x−y Dy y O 2−{x−y/2+y} (x = 0.2; y = 0.04, 0.08, 0.1) offer competitive oxide ion conductivities in the intermediate temperature range. Ce 0.8 Nd 0.1 Dy 0.1 O 1.85 has been found to be an optimum composition with superior oxide ion conductivity of 2.2 × 10 −2 S/cm at 600 °C and activation energy of 0.83 eV. Oxide ion conductivity is largely enhanced by the introduction of Dy 3+ at intermediate temperature due to the low ionic radius mismatch, concentration of surface oxygen vacancies, and stabilization of cubic fluorite structure. Hence, these results suggest that the composition of Ce 0.8 Nd 0.1 Dy 0.1 O 1.85 can be a potential electrolyte for IT-SOFC applications.