Electric propulsion systems provide a higher delta-V for the same mass of propellant when compared to chemical propulsion systems due to their higher Isp levels. Many electric propulsion systems utilize cathodes as electron source. Hollow cathodes generate electron current through thermionic emission mechanism. In this study conventional hollow cathode designs are investigated numerically and experimentally. Considering the problems that are encountered with the conventional designs, a new hollow cathode design is developed, which is called coaxial hollow cathode. Operational parameters of the coaxial cathode are investigated experimentally.