Barium zirconium titanate (BaZr0.08Ti0.92O3) (BZT) ceramics have been prepared by solid state reaction and high energy ball milled (dry and wet) processes. X-ray diffraction has shown the presence of single phase with an orthorhombic structure at room temperature. Addition of Zr strongly influences the crystal structure and electrical properties of ceramics. Analysis of dielectric constant (∈ r ) and loss tangent (tanδ) as a function of temperature shows that high energy ball milled BZT samples have higher dielectric constant (∈ r > 8,000) and low dielectric loss factor (tanδ ~ 0.087 %), as compared to that of solid state reacted one (∈ r < 2,500 and tanδ ~ 0.145 %) at curie temperature (T c ). The phase transition temperature of BZT ceramics with 8.0 mol % Zr content has been found to be 120 °C in solid state reacted sample and about 100 °C in high energy ball milled sample. Surface morphology has confirmed small grain size (<100 nm) in BZT ceramics prepared by wet milled process.