Polycrystalline MgB2 was prepared with different amounts of nano-sized CeO2 inclusions, subjected to X-ray diffraction, scanning electron microscopy and atomic force microscopy characterisation. The nano-CeO2 inclusions were found to affect the lattice parameters because of nanoinclusions up to 2 wt%. The stiffness was investigated and the morphology of pure powders reveals randomly oriented grains and cleans grain boundaries, whereas with nanoinclusions, grain surfaces and boundaries were decorated with nano-sized CeO2 particles. Significant enhancement of the superconducting critical current density Jc was observed because of nano-CeO2 addition. The obtained results are in good agreement with other experimental and theoretical results.