Bi0.5Na0.5TiO3 (BNT) emerges as a promising ferroelectric and piezoelectric lead-free candidate to substitute the contaminant Pb[TixZr1−x]O3 (PZT). However, to obtain optimal ferroelectric and piezoelectric properties, BNT must be sintered at high temperatures. In this work, the reduction of sintering temperature by using iron added to BNT is demonstrated, without significant detriment to the dielectric properties. BNT-xFe with iron from x = 0 to 0.1 mol (∆x = 0.025) were synthesized using high-energy ball milling followed by sintering at 900 °C. XRD analysis confirmed the presence of rhombohedral BNT together with a new phase of NaFeTiO4 (NFT), which was also corroborated using optical and electronic microscopy. The relative permittivity, in the range of 400 to 500 across all the frequencies, demonstrated the stabilization effect of the iron in BNT. Additionally, the presence of iron elevates the transition from ferroelectric to paraelectric structure, increasing it from 330 °C in the iron-free sample to 370 °C in the sample with the maximum iron concentration (0.1 mol). The dielectric losses maintain constant values lower than 0.1. In this case, low dielectric loss values are ideal for ferroelectric and piezoelectric materials, as they ensure minimal energy dissipation. Likewise, the electrical conductivity maintains a semiconductor behavior across a range of 50 Hz to 1 × 106 Hz, indicating the potential of these materials for applications at different frequencies. Additionally, the piezoelectric constant (d33) values decrease slightly when low concentrations of iron are added, maintaining values between 30 and 48 pC/N for BNT-0.025Fe and BNT-0.05Fe, respectively.