BiFe1−xCrxO3, (0 ≤ x ≤ 10) nanoparticles were prepared through the sol–gel technique. The synthesized nanoparticles were characterized using various techniques, viz., X-ray diffraction, high-resolution field emission scanning electron microscopy (HRFESEM), energy dispersive spectroscopy (EDS), UV–Vis absorption spectroscopy, photoluminescence (PL), dc magnetization, near-edge X-ray absorption spectroscopy (NEXAFS) and cyclic voltammetry (CV) measurements, to investigate the structural, morphological, optical, magnetic and electrochemical properties. The structural analysis showed the formation of BiFeO3 with rhombohedral (R3c) as the primary phase and Bi25FeO39 as the secondary phase. The secondary phase percentage was found to reduce with increasing Cr content, along with reductions in crystallite sizes, lattice parameters and enhancement in strain. Nearly spherical shape morphology was observed via HRFESEM with Bi, Fe, Cr and O as the major contributing elements. The bandgap reduced from 1.91 to 1.74 eV with the increase in Cr concentration, and PL spectra revealed emissions in violet, blue and green regions. The investigation of magnetic field (H)-dependent magnetization (M) indicated a significant effect of Cr substitution on the magnetic properties of the nanoparticles. The ferromagnetic character of the samples was found to increase with the increase in the Cr concentration and the increase in the saturation magnetization. The Fe (+3/+4) was dissolved in mixed-valence states, as found through NEXAFS analysis. Electrochemical studies showed that 5%-Cr-doped BFO electrode demonstrated outstanding performance for supercapacitors through a specific capacitance of 421 F g−1 measured with a scan rate of 10 mV s−1. It also demonstrated remarkable cyclic stability through capacitance retention of >78% for 2000 cycles.