In this work, we explored NIR reflectivity and thermal conductivity of Y3-xCexAl5O12 compounds (x = 0.05, 0.1, 0.15, 0.2) as thermal insulation pigments. The test results show that the phase structure still retained the cubic phase and the morphology presents a curved worm-shaped. Also, cerium occurs in its mixed-valence state (+3, +4) in the Ce-doped Y3Al5O12. The prepared compounds registered a high value of NIR solar reflectance in 700–2500 nm of light (76.47%−90.06%), and the variation in NIR reflectivity value was expounded in terms of free carrier concentration and the electron trap. The ceramic materials added with the Ce-doped Y3Al5O12 pigments exhibited a lower thermal conductivity (<0.3796 W/mk), compared with other conventional ones. Moreover, the composition displayed bright yellow colors, corresponding to the transition absorption of Ce3+ in the blue region from 4f to 5d. Application studies proved that the inner surface temperature of the ceramic substrate prepared with the synthesized pigment is 7.5 °C lower than the ordinary ceramic of the same color. This type of yellow ceramic pigment with optimal NIR reflectivity and low thermal conductivity exhibited potential applications in insulating ceramics.