A new composite system, Ba(Zr0.07Ti0.93)O3 (BZT93) ceramic/NiO nanoparticles, was fabricated to investigate the effect of NiO nanoparticles on the properties of these composites. M-H hysteresis loops showed an improvement in the magnetic behavior for higher NiO content samples plus modified ferroelectric properties. However, the 1 vol.% samples showed the optimum ferroelectric and ferromagnetic properties. Examination of the dielectric spectra showed that the NiO additive promoted a diffuse phase transition, and the two phase transition temperatures, as observed for BZT93, merged into a single phase transition temperature for the composite samples.