Using high energy ball milling technique the nanocrystalline Pb 1-3x/2 Nd x TiO 3 (where x = 0.01), abbreviated as PNT, ceramics with tetragonal shape has been synthesized and analyzed through X-ray diffraction and scanning electron microscope analysis. The frequency dependent ac conductivity and dielectric constant measurements of the PNT ceramics sintered at 800, 900, 1000 and 1100°C has been performed in the 100-525°C temperature range and the density of states at the Fermi level evaluated. The minimum hopping length and dielectric constants in PNT has been explained successfully using the correlated barrier hopping model. With first order correction to energy the quantum theory of ferroelectric has been applied to explain the dielectric behavior in the paraelectric phase. The explanation for density of states at morphotropic phase boundary and the conduction mechanism of charge transport were found to be in good agreement with the experimental observations.