We represent a detailed study of a dilute suspension of ferroelectric barium titanate nanoparticles (BaTiO3 NPs) in a nematic matrix by probing dielectric, electro-optical, and optical properties. The strong local surface electric field (order of ∼1010 Vm−1) of BaTiO3 produces pseudonematic domains within the matrix, which renders an enhancement in both the perpendicular and parallel components of dielectric permittivity that increases with increasing NP concentrations. Due to changes in molecular ordering, the dielectric anisotropy of pristine nematic increases by 10.7%, 24.6%, and 33.3% after the addition of 0.1, 0.3, and 0.5 wt. % BaTiO3 NPs with subsequent lowering in threshold voltage. Interestingly, the nematic-BaTiO3 blended cells showed 23.2%, 49.3% and 67.6% faster electro-optic response for 0.1, 0.3, and 0.5 wt. % of NPs, respectively. In the nematic matrix, BaTiO3 NPs act like chromophores resulting in a bathochromic shift in fluorescence spectra due to an enhanced degree of conjugation. This investigation reveals that the ferroelectric BaTiO3 NPs-nematic composites will be suitable for superior fluorescent electro-optical devices.