The Ba 0.55 Sr 0.4 Ca 0.05 TiO 3 -MgO (BSCT-MgO) composite powders possessing core-shell structure, small particle size and high specific surface area were prepared by the novel two-step sol-gel method which was based on the citric acid (CA)-ethylene glycol (EG) system. In this experiment, the Ba 0.55 Sr 0.40 Ca 0.05 TiO 3 (BSCT) powders were firstly synthesized by chemical co-precipitation method. MgO [(MgO/BSCT) mass = 1] and MnO 2 [(MnO 2 / BSCT) mole = 0.01] were added into the BSCT powders in the first sol-gel step. 1.5 wt% B 2 O 3 -Li 2 O as sintering aids was added into the composite powders during the second sol-gel step. The BSCT-MgO composite powders were detected to have a perfect core-shell structure which was detected by the transmission electron microscope. Perovskite BSCT and periclase MgO were confirmed to exist in the BSCT-MgO composite powders according to the X-ray diffraction patterns. The Ba 0.55 Sr 0.4 Ca 0.05 TiO 3 -MgO (BSCT-MgO) composite ceramics that synthesized with the core-shell powders were sintered at 1,000°C for 2 h. According to the scanning electron microscope images, the grain sizes of BSCT and MgO in the BSCT-MgO composite ceramics were in the range of 0.5-2.0 lm and 1.0-2.5 lm, respectively. The dielectric constant of the BSCT-MgO composite ceramics was 210 and the dielectric loss was 0.0012 when tested at 1 MHz, room temperature. The BSCT-MgO composite ceramics were expected to be a promising candidate for applying as phase shifters or tunable components, etc, in the microwave field.