The role of the strain energy and phase stability in the diffuse phase transition have been investigated in the highly disordered solid solution, (Pb1-xBax)(Zr0.4Ti0.6)O3 (0.2 x 0.4). X-ray diffraction analysis indicates that tetragonality (c/a) decreases with the increasing Ba content. Also as the Ba content increases, phase transition becomes more diffuse and at the same time dielectric relaxation as a function of measured frequencies in the 1KHz-10MHz range occurs very pronouncedly. In the Ba content range, 0.2 x 0.35, hysteresis loops are routinely observed and the loop is observed to narrow shape as the Ba content increases but becomes very slim at 40mol% Ba content. Moreover thermal analysis shows that there is no abrupt change in the thermal expansion coefficient below the apparent transition temperature at which dielectric constant becomes maximum. From the above results, it has been concluded that creation of the strain energy due to the distorthion that occurred during the phase transition suppresses diffuse phase transition.