Fe-substituted PMN-32PT relaxor ferroelectric crystals were grown by a high-temperature flux method. The effects of charged defects on the dielectric relaxor and conductivity mechanism were discussed in detail. The Fe-substituted PMN-32PT crystal showed a high coercive field (Ec = 765 V/mm), due to domain wall-pinning, induced by charged defect dipoles. Three dielectric anomaly peaks were observed, and the two dielectric relaxation peaks at low temperature were associated with the diffusion phase transition, while the high temperature one resulted from the short-range hopping of oxygen vacancies. At temperature T ≤ 150 °C, the dominating conduction carriers were electrons coming from the first ionization of oxygen vacancies. For the temperature range from 200 to 500 °C, the conductivity was composed of the bulk and interface between sample and electrode, and the oxygen vacancies were suggested to be the conduction mechanism. Above 550 °C, the trapped electrons from the Ti3+ center were excited and played a major role in electrical conduction. Our results are helpful for better understanding the relationship between dielectric relaxation and the conduction mechanism.