The Powder characteristics and sintering behavior of $SiO_2$ coated $BaTiO_3$ were studied. $BaTiO_3$ powders were synthesized by the liquid mix method developed by Pechini, and silica coating was prepared by alkoxide hydrolysis method with TEOS and ethanol. The particle size of the $BaTiO_3$ powders was 35 nm and the thickness of the $SiO_2$ coating layer was 5 nm. As the $SiO_2$ content increased, the $SiO_2$ layers improved the powder dispersion by increasing electrostatic repulsion between the $BaTiO_3$ particles. Effects of MgO coating on microstructure and dielectric properties of $BaTiO_3$ have been studied compared with mechanically MgO mixed $BaTiO_3$. MgO coated $BaTiO_3$ particles were prepared by a homogeneous precipitation method using $MgCl_2cdot 6H_2O$ and urea. MgO coated $BaTiO_3$ exhibited homogeneous microstructure compared with mixed samples. XRD analysis revealed that Mg substitution for the Ti site in the MgO mixed sample was much greater than in the coated one. Electrical properties of MgO mixed and coated $BaTiO_3$ were affected by the diffusion behavior of Mg in $BaTiO_3$ lattice.