An innovative double-ejection micro-cathode arc thruster (ACd-µCAT), which consists of a cylindrical inner anode, a cylindrical outer cathode and two insulating sleeves (an inner insulating sleeve and an outer insulating sleeve), was proposed. The differences in electrical characteristics, plasma parameters and propulsion performance between the newly proposed ACd-µCAT and a traditional μCAT were examined. Study results showed that compared to the traditional μCAT structure, by using the ACd-µCAT, the peak value of produced thrust was increased 9.3 times, while the amplitude of the ion current and the ion-to-arc ratio were increased 5.4 and 5.9 times (from 1.2% to 7.1%), respectively. In addition, data from Langmuir probe experiments indicated that peak values of the directional propagation speed and density of plasma plume were increased 3.1 times and 4.2 times, respectively. Moreover, plasma plume directional ejection performance was also significantly improved. This study result will provide support for the development of a new-generation μCAT.