This study focused on analyzing the ferroelectric, piezoelectric, and dielectric properties of lead-free Bi0.487Na0.427K0.06Ba0.026TiO3 (0.854BNT-0.12BKT-0.026BT) ternary ceramic system by systematically doping 0.001, 0.01, 0.1, 0.5, and 1.0 mol% Gd2O3. The specific composition that was investigated is located at the tetragonal side of the rhombohedral-tetragonal morphotropic phase boundary (MPB) region. Undoped and Gd-doped BNT-BKT-BT ceramics were produced by the conventional solid-state reaction method. Ferroelectric, piezoelectric, and dielectric properties of ceramics were analyzed by carrying out electrical measurements from sintered samples. An ultrahigh field-induced unipolar strain of 0.52% at 65 kV cm−1, with a converse piezoelectric coefficient d33* of up to 795 pm V−1, was achieved with 0.5 mol% Gd doping. This was attributed to the Gd dopant disrupting the normal ferroelectric order and leading to the formation of a nonpolar relaxor phase. The field-induced transition from the nonpolar relaxor phase to the normal ferroelectric phase resulted in relatively large field-induced strain values in the 0.5 mol% Gd-doped ceramics. These results suggest that Gd-doped BNT-BKT-BT ceramics hold promise for digital actuator applications.