In this study, the correlation between the electrical properties and crystalline phases of ZnO-Bi 2 O 3 based varistor ceramics with rare earth additives was investigated. The additives used were in the form R 2 O 3 , where R represents Eu, Ho, Y, Er, Yb, or Lu. It was found that the incorporation of rare earth additives led to an increase in the varistor voltage in the nonlinear region, an increase in the leakage current in the pre-breakdown region, and a reduction in the limiting voltage in the upturn region. In the sample with added Y 2 O 3 , a phase referred to as the R-phase, which contained Y, Bi, Sb, Zn, Mn, and O, was observed to be homogeneously distributed at ZnO grain boundaries. X-ray diffraction analysis revealed that the amount of the Zn-Sb-O spinel and Bi-Cr-O phases present was reduced by the rare earth addition, and that rare earth elements were incorporated into a common crystalline phase. It is suggested that the formation of the R-phase at ZnO grain boundaries and the reduction in the Bi 2 O 3 liquid phase during the sintering process might be responsible for suppressing ZnO grain growth, thus leading to an increase in the varistor voltage.