Tubular type solid oxide fuel cells are considered as the advantages of short gas sealing line and higher thermal stability. A micro-tubular type solid oxide cell was prepared by using a tubular type NiO-Y2O3 stabilized ZrO2 (NiO-YSZ) fuel electrode substrate and La0.9Sr0.1Ga0.8Mg0.2O3−δ (LSGM) electrolyte film which was prepared by dip-coating and co-sintering method. Since IR loss and overpotential was still larger than those expected, the effects of insertion Ni-based fuel electrode functional layer on NiO-YSZ tubular substrate and rare earth oxide infiltration into NiO-YSZ tube was further studied. The result indicated that the cell using Ni-Fe functional layer and infiltration of CeO2 into the substrate shows a higher maximum power density. The electrolysis performance of the prepared tubular cell under reversible operation was also studied. The reasonably large current density was also realized in electrolysis mode on the optimized cell.