The paper deals with synthesis of nanocrystalline La0.7 Sr0.3 Mn O3 (LSMO) and BaTiO3 (BT) powder via hydroxide co-precipitation route. The particle size of the powder is determined using Williamson Hall method and is observed to be nearly 35 nm for LSMO and 120 nm for BT. To avoid occurrence of impurity phases the composites of LSMO and BT are formed at 1273 K using Bi2O3 as a sintering aid. The paper focuses mainly on synthesis and dielectric properties of LSMO and BT composites.