In this study, BiFeO₃-BaTiO₃ ceramics have been fabricated by a solid-state reaction method. The effects of BaTiO₃ content in the (1-x)BiFeO3-xBaTiO3 (x = 0.1, 0.2, 0.25, 0.3, 0.4, 0.5) system on crystal structure and magnetic, dielectric, and ferroelectric properties were investigated. Perovskite BiFeO₃ was stabilized through the formation of a solid solution with BaTiO₃. Rhombohedrally distorted structure (1-x)BiFeO₃-xBaTiO₃ ceramics showed strong ferromagnetism at x = 0.5. Dielectric and ferroelectric properties of the BiFeO₃-BaTiO₃ system also changed significantly upon addition of BaTiO₃. It was found that the maximum dielectric and ferroelectric properties were exhibited in the (1-x)BiFeO₃-xBaTiO₃ system at x = 0.25. This suggested the morphotropic phase boundary (MPB) with the coexistence of both rhombohedral and cubic phases of the (1-x)BiFeO₃-xBaTiO₃ system at x = 0.25.