In scope of this paper, DSC, small-angle X-ray scattering (SAXS), electro-optic and dielectric studies have been done on BaTiO3 nanoparticles dispersed in a ferroelectric liquid-crystalline (FLC) matrix. Electro-optic studies showed slightly lower spontaneous polarization, faster response time and relatively higher coercive voltage for the nanocomposite as compared to the pure FLC mixture. Dielectric measurements revealed a lower relative dielectric permittivity for the nanocomposite. This paper addresses all the issues starting from the kind of nanoparticles and FLC materials used for the preparation of nanocomposites, the various measurements done and a detailed discussion on the observed results.