A slightly modified 8-cm Hg ion thruster has demonstrated significant increases in performance. Thrust, for example, nas been increased by almost a factor of five over that ot the baseline thruster. Uiscussed in this paper are (1) thruster operation with various three grid ion optics configurations, (2) thruster performance as a function of accelerator grid open area, cathode baffle, and cathode orifice size, ana (3) a life test of 614 hours at a beam current of 2bO rnA (17.5 mN thrust). Highest thruster efficiency was obtained with the smallest open area acc2ierator grid. The benefits in efficiency from the low neutral loss gr'ids were mitigated, however, by the limitation such grids place on attainable ion beam current densities. HIe thruster components suffered negligiole weight losses during the life tpst, which indicated that operation of the 8-cm thruster at extendea levels of thrust and power is possible with no significant loss of lifetime.