This study explores the detailed impact of Yb3+ substitutional doping on the structural, optical, dielectric, and electrochemical characteristics of bismuth ferrite. Rigorous structural analysis conducted via X-ray diffraction confirmed the formation of a rhombohedral distorted perovskite structure, within the R3C space group. The investigation of crystallite size showed a reducing trend as Yb3+ content increased. Morphological studies revealed the presence of finely dispersed nanocrystalline grains, exhibiting particle size within the range from 281 to 197 nm. Raman spectroscopy unveiled notable phonon mode shifts towards higher wavenumbers, correlating with increased Yb3+ doping concentrations. Additionally, a discernible reduction in bandgap energy, from 2.15 to 1.98 eV, was observed with increasing doping levels. An improved dielectric response was observed with Yb3+ doping. Electrochemical assessments, employing cyclic voltammetry and galvanostatic charge–discharge techniques, revealed the superior electrochemical performance of the 30 % Yb-doped bismuth ferrite-modified electrode, demonstrating a specific capacitance of 575 Fg−1 at a scan rate of 10 mVs−1. These findings underscore the tailored engineering of Yb-doped bismuth ferrite nanoparticles, positioning them as promising candidates for the next generation of supercapacitor devices.