In order to evaluate the effects of Lithium (Li) doping on the various properties of KCaF3, we present first-principles calculations built on density functional theory (DFT) and employing approximation GGA-PBE. The compound possesses a 2 × 2 × 1 supercell and cubic geometry with space group pm3m. By putting the TDOS and PDOS concepts into practice, the effects of Li-doping on electronic structure and, consequently, optical characteristics have been investigated and evaluated in detail. With the formation of new states in band structure, the substitution of the Lithium (Li) atom for the Calcium (Ca) atom drastically adjusts the electronic band structure. The indirect bandgap of pure KCaF3 was measured to be 5.37 eV. The band gap was slightly shrunk as a result of changes in Li concentration. This causes the indirect band gap of KCaF3 to change to the direct band gap for Li-doped KCaF3. A strong interaction between the Li atom and the atoms around it is seen and the density of states for Li-doped KCaF3 relocates at slightly lower energies. Additionally, there is a noticeable change in the partial density of states of KCaF3 near the conduction band bottom, leading us to believe that Li-doping has an impact on the electronic band structure. Investigations into the optical characteristics of doped and undoped KCaF3 and correlations with its electrical structure are made. The massive difference in optical characteristics and band gap (i.e., indirect to direct) caused by Li-doping makes this substance a desirable candidate for optoelectronic materials.