EuTi1−xFexO3 (x = 0.0–0.5) is studied to analyze the effect of Fe substitution on structural, dielectric and magnetic properties. We found that Fe substitution in place of Ti increases the barrier for charge carrier hopping therefore, suppresses the electrical conduction in the material. It has also been observed that characteristic G-type antiferromagnetic ordering of pure EuTiO3 can be significantly modified with Fe doping. Interestingly, formation of oxygen vacancies due to Fe substitution allows next nearest neighbor Eu ion interaction and generates ferromagnetic response in the magnetic hysteresis loops. Magnetic phase transition temperature also shifts to the higher temperature side with the increase in Fe concentration till x = 0.3 which implies strengthening of magnetic interaction. Schematic models based on the crystal and electronic structure are presented to explain the observed dielectric and magnetic response and it is concluded that both features can be tuned by the Fe substitution.