In this work, we presented investigations on the microstructural, magnetic, dielectric and conductive properties of (1-x)Na0.5Bi0.5TiO3-xCoFe2O4 (NBT-CFO) composite ceramics (x = 0.1, 0.2, 0.3 and 0.5). The composites were synthesized using the in-situ sol-gel method, and the resulting CFO/NBT embedded structure was observed in the 0.9NBT–0.1CFO sample. Rietveld refinement confirmed that the embedded structure had remarkable effects on the c/a ratios of NBT-CFO composites. Increasing normalization saturation magnetizations were observed with increasing of CFO contents, thus revealing the influence of phase interfaces on magnetism. Dielectric relaxation anomalies were observed on both temperature dependent permittivity and loss spectra. Two sets of anomalies in these spectra were caused by space charges on the phase interfaces of embedded CFO grains and the NBT matrix. The conduction behavior of ceramics with and without the embedded structure obeyed the double power law and Jonscher's fraction power law, respectively, which inferred a transformation from the AC to the DC conduction mechanism with the disappearance of the embedded structure.