Nanocrystalline Barium niobate ($BaNbO_3$) has been synthesized by a novel auto-igniting combustion technique. The X-Ray diffraction studies reveals that $BaNbO_3$ posses a cubic structure with lattice constant $a=4.071{AA}$. Phase purity and structure of the nano powder are further examined using Fourier-Transform Infrared and Raman spectroscopy. The average particle size of the as prepared nano particles from the Transmission Electron Microscopy is 20 nm. The UV-Vis absorption spectra of the samples are recorded and the calculated average optical band gap is 3.74eV. The sample is sintered at an optimized temperature of $1425^{circ}C$ for 2h and attained nearly 98% of the theoretical density. The morphology of the sintered pellet is studied with Scanning Electron Microscopy. The dielectric constant and loss factor of a well-sintered $BaNbO_3$ at 5MHz sample is found to be 32.92 and $8.09{ imes}10^{-4}$ respectively, at room temperature. The temperature coefficient of dielectric constant was $-179pp/^{circ}C$. The high dielectric constant, low loss and negative temperature coefficient of dielectric constant makes it a potential candidate for temperature sensitive dielectric applications.