We define the new central Morrey space with variable exponent and investigate its relation to the Morrey-Herz spaces with variable exponent. As applications, we obtain the boundedness of the homogeneous fractional integral operator TΩ,σ and its commutator [b,TΩ,σ] on Morrey-Herz space with variable exponent, where Ω∈Ls(Sn-1) for s≥1 is a homogeneous function of degree zero, 0<σ<n, and b is a BMO function.