Dielectric, magnetic and ferroelectric properties of Bi1‐xBaxFeO3(x = 0.1, 0.2 and 0.3) synthesized by solid state reaction method are reported. X‐ray diffraction pattern showed that Bi1‐xBaxFeO3was single phase. Ba substitution has led to a decrease in grain size and hence an increase in the electrical resistivity. The variation of dielectric constant and loss has been studied over a frequency range of 1 kHz – 2 MHz at room temperature. Ba doping leads to effective suppression of the spiral spin structure of BiFeO3, resulting in the appearance of net magnetization. Improved multiferroic properties of Bi0.8Ba0.2FeO3 ceramic with remnant magnetization and polarization 0.093 emu/g and 0.808 µC/cm2, respectively, were obtained. The evidence of ferromagnetism and ferroelectric hysteresis loops in Bi1‐xBaxFeO3system at room temperature makes it a good candidate for potential applications. (© 2010 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)