This research is focused on the synthesis, characterization and optical properties of novel environmentally friendly inorganic pigment BiCeO. Powder sample was prepared by the conventional ceramic method, i.e. solid-state reaction. Prepared pigments were applied into organic matrix in mass tone and ceramic glaze. Thermal behaviour of the reaction mixture was investigated using differential thermal and thermogravimetric analyses. The optimum conditions for synthesis of the compound were determined. The pigment BiCeO was evaluated from standpoint of its structure, colour and particle sizes. The phase composition of the product was studied by X-ray diffraction analysis. Colourimetric parameters were evaluated by measuring the reflectance in the visible region of light. The resulting colour hue of studied pigment in an organic binder is yellow to yellow orange, depending on the calcination temperature. Characterization of BiCeO pigment suggests that it has a potential to be alternative yellow or yellow-orange colourant for paint, plastics, ceramics and building materials.