Using　first　principle　calculations,　the　effect　of　Ce　with　different　doping　concentrations　in　the　network　of　Zirconium　dioxide　(ZrO　2　)　is　studied.　The　ZrO　2　cell　volume　linearly　increases　with　the　increasing　Ce　doping　concentration.　The　intrinsic　band　gap　of　ZrO　2　of　5.70　eV　reduces　to　4.67　eV　with　the　2.08%　Ce　doping.　In　4.16%　cerium　doped　ZrO　2　,　the　valence　band　maximum　and　conduction　band　minimum　come　closer　to　each　other,　about　1.1　eV,　compared　to　ZrO　2　.　The　maximum　band　gap　reduction　of　ZrO　2　is　observed　at　6.25%　Ce　doping　concentration,　having　the　value　of　4.38　eV.　No　considerable　shift　in　the　band　structure　is　found　with　further　increase　in　the　doping　level.　The　photo-response　of　the　ZrO　2　is　modulated　with　Ce　insertion,　and　two　distinct　modifications　are　observed　in　the　absorption　coefficient:　an　imaginary　part　of　the　dielectric　function　and　conductivity.　A　2.08%　Ce-doped　ZrO　2　modeled　system　reduces　the　intensities　of　peaks　in　the　optical　spectra　while　keeping　the　peaks　of　intrinsic　ZrO　2　.　However,　the　intrinsic　peaks　related　to　ZrO　2　completely　vanish　in　4.16%,　6.25%,　8.33%,　and　12.5%　Ce　doped　ZrO　2　,　and　a　new　absorption　hump　is　created.　©　2018　by　the　authors.