This research investigates the potential of Calcium titanate (CaTiO3 or CT) nanoparticles as functional additives to enhance the dielectric properties of Barium titanate (BaTiO3 or BT)-based ceramic dielectrics. To address the need for high-temperature stability in MLCC (multilayer ceramic capacitor) applications, especially within the automotive and aerospace sectors, we have explored BT-based complex perovskite solid solutions comprising various cation substitutions, including Ca2+ and Yb3+, into barium titanate (BT) as a method to suppress the dielectric property anomaly near the Curie temperature effectively. The focus is on the impact of the application of CT nanoparticles as additive materials on phase formation, microstructure development, and dielectric behavior of the resulting ceramics to align with the Extended 'Temperature Coefficient of Capacitance (TCC)' criteria defined by the EIA X8R specification. When the hydrothermally synthesized CT nanopowder was applied in the Ca-doped BT ceramics fabrications as source material of the Ca dopants, it was beneficial to achieve both temperature stability and high dielectric constant. The CT nanoparticles are believed to play multiple roles during the solid-state reaction with BT and rare earth dopant (Yb). Since the Yb3+ ions can be more easily dissolved into the CT lattice than BT with their amphoteric character, the CT nanoparticles in the BT-CT-Yb2O3 mixture can act as an intermediary, dissolving the Yb3+ first in its A- or B-site before the final solid-solution formation with the BT. The sequential substitutions of the Yb3+ and Ca2+ into BT via CT nanoparticles could affect the site occupancy of Ca2+ in the BT lattice, which is very important in determining the dielectric properties of the Ca-doped BT processed in reducing atmospheres. Through a comprehensive experimental approach, including phase composition analysis via X-ray diffraction (XRD) and microstructural examination using Field Emission Scanning Electron Microscopy (FE-SEM) and Transmission Electron Microscopy (TEM), this work reveals the significance of synthetic methodology and dopant incorporation strategy on achieving a desired core-shell microstructure and improved dielectric performance. This research underscores the efficacy of CT nanoparticles as a promising route towards the development of BT-based dielectric ceramics with superior temperature stability, offering valuable insights for the advancement of MLCC technology to cater to high-temperature applications.