PrulcornerOulcorner-based ZnO varistors were fabricated in the range of $Y_2$O$_3$additive content from 0.5 to 4.0mol%, and its microstructure and electrical properties were investigated. Yttrium was distributed nearly in the grain boundaries and the cluster phase formed at nodal point but more in cluster phase. The average grain size was decreased markedly from 34.9 to 8.6${mu}{ extrm}{m}$ with increasing $Y_2$O$_3$additive content. It is believed that the decrease of grain size is attributed to the formation of cluster phase and the weakening of driving force for liquid sintering. As a result, $Y_2$O$_3$was acted as the inhibitor of the grain growth. With increasing $Y_2$O$_3$additive content, the varistor voltage, the activation energy, and the nonlinear exponent increased whereas the leakage current decreased, especially 4.0mol% $Y_2$O$_3$-added varistor exhibited very good I-V characteristics; nonlinear exponent 87.42 and leakage current 46.77nA. On the other hand, as $Y_2$O$_3$additive content increases, the varistor showed tendency of the salient decrease for donor concentration and the increase for barrier height. Conclusively, it is estimated that ZnO:Pr varistor compositions added more than 2.0mol% $Y_2$O$_3$are to be used to fabricate useful varistors.