We report ab-initio density functional theory calculations of crystal and electronic structure of Mg2Mo6S8, a candidate material to be used in rechargeable magnesium batteries, by employing hybrid exchange-correlation functionals. We find that Mg2Mo6S8 crystalizes in a triclinic geometry and it is a semiconductor with an indirect band gap. Ab-initio molecular dynamics shows that Mg ions present progressive diffusion starting at 200 K with a preferable path through the channel between Mo6S8 blocks along the [010] direction. The intercalation voltage of the system is also determined and the results show that the voltage evaluated by PBE and hybrid functionals likely implies the lower and the upper limit of the experimental value. Lastly, we confirm the dynamical stability of the crystal structure by the calculated phonon dispersion relation. (C) 2014 Elsevier B.V. All rights reserved.