Synthesis of a new magnetoelectric [(1−x)(Ba0.85Ca0.15)(Zr0.1Ti0.9)O3‐xCoFe2O4] (weight fraction x=0, 0.1, 0.2, 0.3, 0.4, 0.5 and 1) ceramic particulate composites with its structural characterization and magneto‐electric properties have been reported here in this study. Lead free piezoelectric (Ba0.85Ca0.15)(Zr0.1Ti0.9)O3 (BCZT) and ferrimagnetic CoFe2O4 (CFO) were synthesized using sol‐gel and combustion methods respectively. (1−x)BCZT‐xCFO magnetoelectric composites were then synthesized by mixing of the calcined individual ferroic phases with required weight fractions. Powder X‐ray diffraction studies indicate the coexistence of BCZT and CFO phases in the composites sintered at 1300°C. 0.5BCZT‐0.5CFO composite showed high strain sensitivity (dλ/dH) of 52×10−9 Oe−1, which is comparable to that of pure CFO (50×10−9 Oe−1). A high piezoelectric voltage constant (g33) of 8×10−3 V m/N was measured for 0.8BCZT‐0.2CFO sample. All the composites showed magnetoelectric effect and a high magnetoelectric coupling coefficient (αME) of 6.85 mV/cm Oe was measured for 0.5BCZT‐0.5CFO composite at 1 kHz and a large ME coefficient of 115 mV/cm Oe at its resonance frequency. The effect of microstructure on the magnetoelectric properties of [(1−x)BCZT‐(x)CFO] composites has been studied and reported here as a function of its piezoelectric (BCZT)/ferrite (CoFe2O4) content.