$Ce_{0.8}Gd_{0.2}O_{1.9}$(GDC20) powder was synthesized by milling of $CeO_2$ slurry and Gd oxalate precipitation. The mixture of $CeO_2$ powder and Gd precipitates calcined at $600^{circ}C$ for 2 h showed the particle size distribution similar to that of $CeO_2$ powder, which had been milled during the synthesis process. Attrition milling of the calcined powder with an average particle size of $0.36;{mu}m$ for 2 h resulted in a decrease in the particle size to $0.24;{mu}m$. Although the milled powder consisted of small particles(<$1;{mu}m$), a small amount of fine platy $Gd_2O_3$ particles, which had been survived in the milling process, was observed. Sintering of the powder compacts for 4 h showed relative densities of 80.7% at $1300^{circ}C$ and 97% at $1400^{circ}C$, respectively. Densification was found to almost complete at $1500^{circ}C$, resulting in a dense and homogeneous microstructure with a relative density of 99.5%.