Improved electron and deuterium energy and particle confinement in the presence of low-Z impurities have been observed in many tokamaks under various experimental conditions. Peaked electron density profiles have been obtained in the Frascati Tokamak Upgrade (FTU) ohmic plasmas where a high concentration of lithium has been detected following the installation of a Liquid Lithium Limiter (LLL). This paper presents the results of a gyrokinetic study on the effects of lithium and other low-Z impurities on the linear stability of deuterium and electron temperature driven modes and their associated fluxes for plasma parameters such as those found in the core of LLL-FTU plasmas.Simulations show that a lithium concentration in excess of nLi/ne = 15%, as estimated in the initial phase of a reference FTU discharge, is found to have a strong stabilizing effect on the TEM and high-frequency ETG modes. A significant stabilization of the electron driven modes can still be observed when the lithium concentration is reduced to 3%.In the presence of a significant impurity concentration (nLi/ne = 3–15%) the long wavelength ITG modes drive an inward electron and deuterium flux and outward lithium flux. This process may lead eventually to an increased electron and deuterium density peaking and a reduced Zeff (lithium density below nLi/ne = 1%).