In this study, BiFe$O_3$-BaTi$O_3$ ceramics have been fabricated by a solid-state reaction method. The effects of BaTi$O_3$ content in the (1-x)BiFe$O_3$-xBaTi$O_3$ (x = 0.1, 0.2, 0.25, 0.3, 0.4, 0.5) system on crystal structure and magnetic, dielectric, and ferroelectric properties were investigated. Perovskite BiFe$O_3$ was stabilized through the formation of a solid solution with BaTi$O_3$. Rhombohedrally distorted structure (1-x)BiFe$O_3$-xBaTi$O_3$ ceramics showed strong ferromagnetism at x = 0.5. Dielectric and ferroelectric properties of the BiFe$O_3$-BaTi$O_3$ system also changed significantly upon addition of BaTi$O_3$. It was found that the maximum dielectric and ferroelectric properties were exhibited in the (1-x)BiFe$O_3$-xBaTi$O_3$ system at x = 0.25. This suggested the morphotropic phase boundary (MPB) with the coexistence of both rhombohedral and cubic phases of the (1-x)BiFe$O_3$-xBaTi$O_3$ system at x = 0.25.