100-x)ZrO 2 (x)Bi 2 O 3 (x=5, 10, 15) system has been synthesized by solid-state reaction technique. Tetragonal Bi 7.38 Zr 0.62 O 12.31 phase has formed in all the samples after sintering at 850°C for 24 h. Apart from this, ZrO 2 and Bi 2 O 3 are also identified as minority phases. The volume fraction of Bi 7.38 Zr 0.62 O 12.31 phase increases with increasing concentration of Bi 2 O 3 . The AC conductivity plots exhibit phase transition at 570°C and 460°C for x=10 and x=15 samples, respectively. The maximum conductivity is observed (1.60 mS/cm) in x=15 sample. These results are correlated and supported with microstructural and thermal analysis.