A series of Mg-3:Fe-x + Ce1-x LDHs (3:1) were synthesized by co-precipitation method by varying molar ratio of Fe:Ce between 1:0 to 0:1 (LDH-1 to LDH-6). All synthesized LDHs were characterized by XRD, FT-IR, TEM, N-2 sorption, benzoic acid titration and XPS in detail and evaluated for selective synthesis of dimethyl carbonate by transesterification of ethylene carbonate with methanol. It was demonstrated that the structural and basic properties of synthesized LDHs were strongly dependent on the Fe:Ce molar ratio (Ce concentration). The correlation between their physicochemical properties and catalytic performance was studied in detail. Among all synthesized LDHs the best result was obtained with LDH-3 (Fe:Ce = 0.85:0.15) where LDH structure remained intact, and showed high number of strong basic sites on LDH surface. LDH-3 was recycled 7 times while maintaining high catalyst activity and selectivity towards DMC. The obtained results elucidate the important role of Ce in modifying the basic properties of LDH in enhancing the catalytic activity for DMC synthesis.