0.8 BaTiO3–0.2 Bi0.5K0.5TiO3(BT–BKT20) lead-free ceramics were prepared by conventional solid state reaction method followed by high energy ball milling. The formation of a single phase tetragonal structure in the material was confirmed by X-ray diffraction. Frequency and temperature-dependent dielectric studies show relaxor behavior in the BT–BKT20 which was found to obey modified Curie–Weiss law with degree of diffuseness 1.573. Complex impedance and electric modulus spectroscopy studies reveal temperature-dependent relaxation process in the material. The Cole–Cole plots were measured at high temperatures at which grain effect was observed. Impedance and electric modulus spectroscopy studies show non-Debye kind of conductivity relaxation process in the present material. Activation energies were calculated from impedance and electric modulus spectroscopy and the values of activation energy indicated that the conduction is ionic in nature. AC and DC conductivity have been measured and studied at different temperatures.