The stoichiometric compositions of a ferrite system with a chemical formula CoCr0.5DyxFe1.5−xO4 where x = 0.0, 0.025, 0.05, 0.075 and 0.1 were prepared by the sol-gel auto-combustion method. The structural, morphological and magnetic properties were studied by the X-ray diffraction (XRD), infra-red spectroscopy (IR), scanning electron microscopy, transmission electron microscopy and vibrating sample magnetometer. XRD analysis confirmed the cubic spinel structure of the prepared samples without the presence of any impurity and secondary phases. Selected area electron diffraction and IR measurements gives further confirmation to the XRD observations. Considering that strain mechanism, elastic properties and cation distribution play a major role for controlling the magnetic properties and therefore these properties were precisely evaluated through reliable methodologies such as XRD and IR data. The cation distribution was determined by the X-ray diffraction data which are further supported by the magnetization studies. Magnetoelectric properties of CoCr0.5DyxFe1.5−xO4 + BaTiO3 have also been investigated. The mechanisms involved are discussed in the manuscript.