A new Ag+ ion conducting polymer electrolyte based on PEO+AgNO3 system is reported. The solvation of Ag+ ion with PEO is confirmed by XRD studies. The electrical conductivity and cell discharge characteristics at room temperature (32-degrees-C) are reported. The highest conductivity (9.2 X 10-3 S Cm-1) has been observed for 80:20 composition (i.e. Ag+/E0=0.6). An electrochemical cell with the configuration Ag/PEO + AgNO3/(I2 + C + electrolyte) has also been studied [ for which open circuit voltage (OCV) = 610 mV and short circuit current (SCC) = 4.4. X 10(-6) A] and a number of cell parameters obtained are reported.