Nanoparticles of Sm0.5Sr0.5CoO3 are synthesized using sol–gel method, their structural, electrical and magnetic properties are systematically investigated. The XRD pattern of Sm0.5Sr0.5CoO3 confirms the orthorhombic perovskite structure with an average crystallite size of 14 nm. The thermal study of as prepared powder indicates that Sm0.5Sr0.5CoO3 crystallizes at about 1073 K. The electrical study reports an enhanced value of room temperature electrical conductivity equal to 9.15 × 10−3 S cm−1. The change in the magnetic moment for Sr doping and paramagnetic-ferromagnetic transition is appreciated in magnetic study. The ferromagnetism is accounted for by the Zener’s double exchange interaction between the Co3+ and Co4+. The occurrence of magneto-electric coupling at T ~ 213 K in the study of nanoparticles of Sm0.5Sr0.5CoO3 is the first experimental finding for this sample. The Sr substituted SmCoO3 becomes ferromagnetic with the values of magnetic anisotropy ~ 35976 (erg/g) and squareness ratio ~ 0.52 at 10 K. AC magnetic susceptibility study confirms the presence of spin glass state.