Bi4Ti2 Nb0.5Fe0.5O12 (BTNF) ceramics were synthesized via the conventional solid-state reaction route to evaluate the effect caused by the addition of Fe3+ and Nb5+ ions on the electrical properties of Bi4Ti3O12 (BIT). The XRD pattern obtained for BTFN is the characteristic of a layered structure belonging to the n = 3 member of the Aurivillius family. The dielectric behavior of the material was studied in a wide frequency and temperature range. The results at room-temperature indicate that BTFN has a dielectric constant of ~115, negligible frequency dispersion, and a dissipation factor less than 0.01. The relationship between dielectric constant and temperature showed a single peak with a transition temperature ~40oC lower than BIT. The electric-field-induced polarization switching behavior at 50 Hz exhibited hysteresis loops indicating ferroelectric character.