Abstract: The overheating of the anode and magnetic circuit in two-stage anode layer Hall thrusters is a critical factor restricting both their wider application and the enhancement of power density. In this work, a thermal model with high reliability was developed by integrating finite element analysis with thermal-balance experiments. Under the thruster is working at the 1.1 kW operating condition, the simulated temperatures closely matched the measured values, with an average deviation of only 4.71% across four thermocouple points. Building upon this model, several combined thermal design strategies—such as embedding heat pipes inside the inner coil former and filling ceramics around the shell-type anode—were investigated and optimized. After optimization, all components remained within reasonable temperature ranges when the thruster operated at 2.15 kW, and the power density increased by 95%. The simulation results provide practical guidance for improving the output power density of Hall thrusters and offer a numerical approach for thermal analysis of similar devices.