The magnetic ground state of the antiferromagnet Kondo lattice compound Ce8Pd24Ga has been investigated using neutron powder diffraction, inelastic neutron scattering and zero-field muon spin relaxation measurements. The neutron diffraction analysis, below TN (3.6(0.2)K), reveals a commensurate type-C antiferromagnetic structure with the ordered state magnetic moment of ~0.36 mB/Ce-atom along the cubic <111> direction. The analysis of the inelastic neutron scattering (INS) data based on the crystal field (CF) model reveals a doublet ground state with a ground state moment of 1.29 mB/Ce-atom. The observed magnetic moment from neutron diffraction, which is small compared to the expected value from CF-analysis, is attributed to screening of the local Ce moment by the Kondo effect. This is supported by the observed Kondo-type resistivity and a small change in the entropy of Ce8Pd24Ga at TN. The zero-field muon spin relaxation rate exhibits a sharp increase below TN indicating ordering of Ce moments, in agreement with the neutron diffraction data. The present studies reveal that the physical properties of Ce8Pd24Ga are governed by the onsite Kondo compensation, the moment stabilizing intersite RKKY interaction and the crystal field effect.