In this paper, a novel REY zeolite, modified with rare earth through short process of preparation technology and rare earth location technology was introduced. Compared with routine REY zeolite, micro-activity test (MAT) conversion of the novel REY increased by 18 % at least. The catalytic cracking performances of the catalysts were tested on a fixed-fluid-bed bench unit. The results showed that when compared with CAT-old, the conversion of CAT-new catalyst increased by 1.60 % and heavy oil yield decreased by 0.23 %; the total liquid and light oil yield increased by 1.01 and 0.55 %, respectively. Motor octane number and research octane number of gasoline produced by CAT-new sample have increased 0.1 and 1.0 unit, respectively. Therefore, it has good application prospect and remarkable economic benefit.