The magnetic, electric, dielectric, and optical (band gap) properties of ion doped multiferroic KBiFe2O5 (KBFO) have been systematically investigated utilizing a microscopic model and the Green’s function theory. Doping with Co at the Fe site and Ru at the Bi site induces changes in magnetization, coercive field, and band gap energy. Specifically, an increase in magnetization is observed, while the coercive field and band gap energy decrease. This behavior is attributed to the distinct ionic radii of the doped and host ions, leading to alterations in the exchange interaction constants. The temperature dependence of the polarization P reveals a distinctive kink at the Neel temperature TN, which shifts to higher temperatures with an increase in the applied magnetic field h. Furthermore, doping with Ru and La leads to an increase in polarization. The temperature dependence of the dielectric constant exhibits two peaks at the Neel temperature TN and the Curie temperature TC. Notably, these peaks diminish with increasing frequency. Additionally, the dielectric constant demonstrates a decrease with the rise in the applied magnetic field h. This study sheds light on the intricate interplay between ion doping, structural modifications, and multifunctional properties in KBFO, offering valuable insights into the underlying mechanisms governing its behavior across various physical domains.