A ceramic-ceramic nanocomposite electrolyte having enhanced conductivity is provided. The nancomposite electrolyte is formed from chemically stabilized zirconia such as yttria stabilized zirconia or scandia stabilized zirconia and a heterogeneous ceramic dopant material such as Al.sub.2O.sub.3, TiO.sub.2, MgO, BN, or Si.sub.3N.sub.4. The nanocomposite electrolyte is formed by doping the chemically stabilized zirconia with the ceramic dopant material and pressing and sintering the composite. The resulting electrolyte has a bulk conductivity of from about 0.10 to about 0.50 S/cm at about 600.degree. C. to about 900.degree. C. and may be incorporated into a solid oxide fuel cell.