The polycrystalline samples of BiFeO 3 (BFO) and rare earth-modified bismuth iron oxide, Bi 0.95 R 0.25 FeO 3 (R = Nd, Dy) (BNFO, BDFO) are prepared by a standard high-temperature solid-state reaction technique. A preliminary x-ray structural analysis is carried out to examine the structural deformation and stability of rare earth-modified BFO. Room temperature surface morphologies and textures of the samples are recorded by a scanning electron microscope, which reveals the uniform distribution of the plate-and rod-shaped grains. Studies of dielectric and electric properties in a wide frequency (1 kHz-1 MHz) and temperature (30-400°C) ranges using complex impedance spectroscopic method have provided many new results. The dielectric constant is found to be increases, and the tangent loss decreases as compared to BFO. The electrical polarizations (spontaneous and remnant) is found to be enhanced on rare-earth substitutions. Studies of ac conductivity suggest that the samples obey Jonscher's universal power law. The enhancement of magnetization was observed in rareearth doped samples compared to pure BFO.