Crystal structure and morphology of mechanically activated nanocrystalline Fe/BaTiO3 was investigated using a combination of spectroscopic and microscopic methods. These show that mechanical activation led to the creation of new surfaces and the comminution of the initial powder particles. Prolonged milling resulted in formation of larger agglomerates of BaTiO3 and bimodal particle size distribution, where BaTiO3 particles were significantly larger than those of iron-containing phases. Milling times of 210min and above lead to a significant decrease in temperature of the oxidation of iron in the sample, indicating abrupt change in reactivity. Raman spectroscopy analysis has revealed that activation had a pronounced influence on Fe/BaTiO3 lattice, thereby affecting both the stability of the crystal structure and the phase transition phenomena.