The current investigations deal with the effect of concentration of CeO 2 nanoparticles (NPs) on physical properties of ferroelectric liquid crystal. Infrared transmission spectroscopy has been used to reveal the mechanism behind significant changes in dielectric behavior and electro-optic parameters of nanocomposites, for the first time, in correlation with structural deformation of functional group present in FLC and lattice straining induced by the NPs. The temperature and frequency dependence of dielectric permittivity exhibits a gradual increase in the dielectric constant with the addition of CeO 2 NPs. An increase in the saturated spontaneous polarization (P s ) and switching at a lower bias was also FLC molecules with an enhancement in the dielectric constant and P s values. In addition, the loss profile demonstrates an increase in the frequency and magnitude of ion linked relaxation and Goldstone mode after ceria dispersion, whereas losses on their lower frequency side decreases.