Samples of Ba0.96Bi0.04Ti0.96Fe0.04O3 were prepared by a solid state reaction method. Data on the dielectric constant as a function of temperature and frequency were obtained in the temperature range 35–180 °C at 10 and 100 kHz. The material shows a diffuse phase transition. With increasing frequency, the transition temperature shifts towards lower temperature, resembling that of a relaxor ferroelectric with a negative shift in Tc. Impedance analysis confirms the relaxor behavior.