Lead-free Eu3+ substituted NKBT ceramics (Na0.2K0.3Bi0.5-xEuxTiO3, x = 0 (Eu 0),0.02(Eu 2),0.04(Eu 4), and 0.06(Eu 6)) were strategically designed via a local random field approach. The structural evolution had been confirmed through X-ray diffraction analysis. The observation of a broad dielectric curve supported the enhanced relaxor nature and the phenomena reflected in the P-E and S-E loops. The diffuse phase transition transforms to the plateau-type feature with excellent thermal stability with ±20 % and ± 40 % variation in dielectric constant over the temperature range of 120 to 500 °C and 90 to 500 °C, respectively in Eu 4. A large recoverable energy density of 1.7 J/cm3 with a high breakdown strength of 188 kV/cm was achieved in the Eu 2 sample at room temperature, making it a potential candidate for energy storage application. Moreover, the frequency stability (0.1 to 500 Hz range), thermal stability (45 °C to 85 °C), and fatigue measurement (10−1 to 106 cycles) were performed from the application point of view. The highest efficiency (82 %) was also achieved in the Eu 6. The negligible Sneg of Eu-rich compositions proves the existence of a relaxor state when the field is removed, and it transforms into the ergodic relaxor state. Furthermore, the SRBRF model is exploited to understand and correlate the transformation from normal to relaxor ferroelectrics with their properties. The current study provides a novel idea for compositional design for energy density, efficiency, and thermal stability ceramics by modifying and creating weakly coupled polar phases with rare earth substitution.