The ferroelectric perovskite SrBi2Nb2O9 (SBN) material with a low concentration of double doping at the Bi-site of SBN was studied to understand its influence and usefulness in integrated optoelectronic, soft magnetic memory devices and wear-resistant tribomaterials. The aim of the present study is double doping of SBN with a set of rare earth elements Pr3+/Dy3+ (SBPDN), Pr3+/Gd3+ (SBPGN), Pr3+/Sm3+ (SBPSN), and Pr3+/Y3+ (SBPYN) at the Bi-site of SBN to establish the multifunctional ceramic nature pertaining to diverse applications. XRD with Rietveld refinement analysis acknowledged a single-phase orthorhombic structure with an increase in lattice parameters and unsystematic changes in crystallite size. SEM study indicated that the samples possessed non-uniformly distributed needle-shaped grains. The purity of the material and the detection of functional groups were received from the EDS and FTIR spectroscopy. Structural modifications in SBN have been determined based on a diffuse reflectance spectroscopy (DRS) study and therefore the band gap values decrease from 2.98 eV (SBN) to 2.70 eV (double doping) because of the growth of distortion in the structure and pronounced increase in the density of localized states. Photoluminescence (PL) study on double doped SBN material with an excitation wavelength of 320 nm has yielded a novel red emission at 609 nm, that may be useful for white LEDs. The ferromagnetic signature in the studied materials was confirmed from the room temperature VSM study. Noticed mild wear and a low coefficient of friction in the studied materials of SBPDN and SBPSN compared to other studied ceramic samples from mechanical studies. The simultaneous manifestation of optical, magnetic, and mechanical properties by double-doped SBN ceramics keeps the materials as multi-functional candidates for optoelectronic devices, soft magnetic memory devices, and wear-resistant tribomaterials.