The development of high-quality lighting requires phosphors with excellent performance, and dramatically optimizing the luminescent properties of phosphors is a major challenge. Herein, a novel bismuth-activated yellow phosphor (Ba3Ga2O5Cl2:Bi3+) was firstly prepared by a multi-step solid-state reaction, and the crystal structure, luminescence characteristics, decay time, and thermal stability of the phosphor were systematically studied. Subsequently, the cation substitution strategy (Sr → Ba) was adopted to improve the optical properties. A comparison of the thermal quench performance of the phosphors before and after Sr substitution reveals that this strategy can effectively improve the thermal stability from 17.3 %@423 K to 61.1 %@ 423 K. More importantly, the luminescence intensity of the optimized phosphor was increased by about two times, and the quantum yield was significantly improved from 34.7 % to 85.0 %. Such a large improvement could be rationalized by the modulation of the local structure of Bi3+ ions or the change of band gap when Sr and Ba coexist in the host lattice. In addition, a WLED was prepared by combining Ba2.55Sr0.45Ga2O5Cl2:Bi3+ with commercially available blue phosphor (BaMgAl10O17:Eu2+) and red phosphor (CaAlSiN3:Eu2+) on a 365 nm LED chip, which achieved full-spectrum illumination and demonstrated potential applications.