Relaxor multiferroic properties of nanostructured 0.30BaTiO3–0.52Bi2O3–0.18Fe2O3 mol% (BFBT) were prepared via the mechanical activation method. The mixed powders were ball milled at 10, 20, 30, 50 and 75 h to obtain nanostructured materials. Room temperature XRD patterns for these nanostructured materials at different ball-milling times were investigated. The ball milled of nanostructured BFBT at different ball-milling times is characterized and identified by FTIR. After 50 h, HRTEM revealed the nanostructure of BFBT with an average particle size of 27.86 nm. Dielectric characterization showed a broad and frequency-dependent diffusion in phase transition around 560 K that shifted to the higher temperature with increasing frequency. The dielectric diffusivity (Υ = 1.78) was calculated from the modified Curie–Weiss law. Dielectric permitivitty (ε′) data were fitted using the Vogel–Fulcher relation, confirming the relaxor nature. Furthermore, the slim P-E hysteresis loop demonstrates recoverable energy density (Wrec = 16.17 mJ/cm3) and energy storage efficiency (η = 89.3%) at 360 K. The Néel Temperature (TN = 394 K) was determined by the magnetic susceptibility measurements. The M-H date shows a weak ferromagnetic behavior of the 50 h mechanical milled sample. Therefore, the presented work provides guidelines for synthesizing nanostructured BFBT by mechanical milling for the development of high-potential lead-free energy storage applications.