In order to obtain high grade non-oriented electrical steel with excellent magnetic properties, the effect of Ce on the formation of inclusions, microstructure, texture and magnetic properties of 2.9%Si non-oriented electrical steel was investigated in depth and systematically. The results show that the proper content of Ce (0.005 5%) could make the inclusions in steel aggregated and coarsened. Therefore, the recrystallized grain size increased together with {100} and {110} texture component, and {111} texture component decreased. Under this condition, the magnetic properties reached an optimal value. However, when an excessive amount of Ce (0.019%) was added, all the effects would become opposite.