In this paper, in order to develop outstanding Pb-free composition ceramics, the $Fe_2O_3$-doped ($Na_{0.525}K_{0.443}Li_{0.037}$)($Nb_{0.883}Sb_{0.08}Ta_{0.037}$)$O_3$ + 0.3 wt% $Bi_2O_3$ + x wt% $Fe_2O_3$ (x= 0~1.0 wt%)(abbreviated as NKL-NST) lead-free piezoelectric ceramics have been synthesized using the ordinary solid state reaction method. The effect of $Fe_2O_3$-doping on their microstructure and electrical properties were investigated. XRD diffraction pattern studies confirm that $Fe_2O_3$ completely diffused into the NKL-NST lattice to form a new stable soild solution with $Fe^{3+}$ entering the $Nb^{5+}$, $Sb^{5+}$ and $Ta^{5+}$ of B-site. And, phase structure of all the ceramics exhibited pure perovskite phase and no secondary phase was found in the ceramics. The ceramics doped with 0.6 wt% $Fe_2O_3$ have the optimum values of piezoelectric constant($d_{33}$), planar piezoelectric coupling coefficient($k_p$) and mechanical quality factor($Q_m$) : $d_{33}$ = 233 [pC/N], $k_p$= 0.44, $Q_m$= 95. These results indicate that the ($Na_{0.525}K_{0.443}Li_{0.037}$)($Nb_{0.883}Sb_{0.08}Ta_{0.037}$)$O_3$ +0.3 wt% $Bi_2O_3$ + 0.6 wt% $Fe_2O_3$ ceramic is a promising candidate for lead-free piezoelectric ceramics.