The new heterometallic lithium-niobium aryloxide of composition [LiNb(OC6H3Me2-2,4)6] has been synthesized by the reaction of [Nb(OC6H3Me2-2,4)5] with equimolar amount of [LiOC6H3Me2-2,4] in dry benzene and characterized by physicochemical and IR and 1 H NMR spectral studies. Thermal behaviour of complex studied by TG-DTA techniques in air has yielded pure, single phase LiNbO3 at 684.56 o C and characterized by Fourier transform infrared spectroscopy (FTIR), X-ray powder diffraction (XRD) and Scanning electron microscopy (SEM). The XRD pattern of LiNbO3 nanopowder has revealed a trigonal crystalline phase with average crystallite size of 54nm. SEM micrographs have shown uniform shape with spherical morphology. The dielectric properties viz. dielectric constant () and dielectric loss (tan ) of as obtained LiNbO3 nanopowder have been studied as a function of frequency in 1kHz-1MHz range at room temperature. The variation of both the parameters and tan has also been examined as a function of temperature in 50-350 o C range at different frequencies (1kHz-1MHz). The observed trends of decrease in as well as tan with increase in frequency and increase with rise in temperature have established the diagnostic characteristics of dielectric behaviour of studied LiNbO3 nanopowder.