In the present report, ceramic specimens of sodium bismuth titanate [Na0.5(Bi1-xSmx)0.5TiO3] were prepared through solid-state reaction method with variations in the dopant concentrations specifically, x = 0.0, 0.1, 0.3, 0.5. The structural, optical, mechanical, and magnetic properties of lead-free NBT ceramics were investigated. The rhombohedral phase with space group R3c was confirmed in all prepared ceramic samples using X-ray diffraction patterns and Rietveld analysis. SEM micrographs and Energy Dispersive X-ray spectroscopy (EDAX) assess the morphology, grain size, overall structure, and stoichiometry of the developed compounds. FTIR spectroscopy was used for characterizing and identifying the functional groups. UV-vis spectroscopy revealed that band gap values decreased as dopant concentration increased, confirming the use of NBT-based perovskite as a photoactive material. PL spectra at room temperature exhibited reddish-orange emission. Colour coordinates and CCT values are in the range of 3483K to 5912K. At a concentration of x=0.3, the materials displayed a high Vickers hardness of 8.20 GPa and exhibited minimal wear with low frictional coefficient values. Ferromagnetic behaviour at room temperature (RTFM) was detected in Sm-modified ceramic samples, as confirmed by the VSM study. The cumulative effect impact of the rare earth dopant cation at the Bi-site of NBT was widespread and demonstrated significant potential for use in optoelectronic devices.