Bi2Te3 nanoparticles are synthesized by mechanical alloying the Bi and Te powders under the Ar and pressed powdered samples are sintered at 573 K. Rietveld refined XRD patterns, FESEM images and EDX spectra reveal the microstructure, morphology and phase purity of the samples. Bandgaps are obtained from the FTIR spectra and a blue shift with size reduction indicates the size confinement effect. The non Debye type ac conductivity and dielectric constant variations with milling time and sintering are measured. The improved photocatalytic degradation efficiency of the sintered sample (83.59 %) using Rhodamine B dye under visible light elucidates reduced porosity effect. The photocatalytic hydrogen evolution efficiencies of these nanoparticles are measured and a probable mechanism is depicted. The highest H2 generation efficiency (1462.5 μmol g−1h−1) is observed with the sintered sample. Microhardness measurement reveals normal indentation size effect. Empirical correlations among electrical conductivity, microhardness and photodegradation are established for the first time.