Bismuth Ferrite (BFO) intercalated Montmorillonite clay (MMT) nano composites have been synthesized using ascorbic acid and its optical behavior has been investigated. The characterization of BFO-MMT nano composites has been done using FT-IR, UV-visible, X-ray diffraction (XRD), Scanning Electron Microscope (SEM). Also, electron hole recombination has been investigated by photoluminescence (PL). From the analytical techniques, it has been found BFO entered into the layered host which was proved by elongation of basal plane and therefore agglomerated BFO was formed. The particle size can be calculated by Scherrer formula, is in good agreement with SEM. The strong absorption band in UV-Visible region attributed BFO nano composites can be used for photo catalytic degradation of Rhodamine-B (Rh-B). From the electrochemical studies, BFO-MMT clay nano composites showed a good specific capacitance at a scan rate of 10 mVs −1 .