Enabling fuel cell operation at high current density is critical for developing competitive alternative power system to replace internal combustion engine. However, liquid water management continues to be a challenge for high humidity or high current density operation. Water condensation in the porous media hinders efficient oxygen transport to the catalyst layer, which in turns, reduces fuel cell performance. To improve water management capability, the gas diffusion layer is often impregnated with Polytetrafluoroethylene (PTFE) and coated with a thin microporous layer, which have shown to improve fuel cell performance, especially under wet conditions. However, the fundamental mechanism that drives the performance enhancement is still not well understood. In this work, the effects of PTFE impregnation and MPL were studied using both experimental and computational techniques. Both limiting current and polarization tests under dry and wet operating condition are conducted to study the oxygen transport resistance and fuel cell performance. In addition, a 2-D, two-phase, multi-physics PEMFC model is developed to simulate performance and gain a fundamental understanding of local water saturation and oxygen concentration. The combined results show that 5 wt% PTFE impregnation with MPL significantly enhances liquid water management, which enables higher current density operation of a fuel cell.