A multilayer chip varistor comprises a multilayer body and a pair of external electrodes formed on the multilayer body. The multilayer body has a varistor section and a pair of outer layer sections disposed so as to interpose said varistor section. The varistor section comprises a varistor layer developing a voltage nonlinear characteristic and a pair of internal electrodes disposed so as to interpose the varistor layer. The pair of external electrodes are connected to respective electrodes of the pair of internal electrodes. The relative dielectric constant of the outer layer sections is set lower than the relative dielectric constant of the region where the pair of internal electrodes in the varistor layer overlap each other.