In this article, we investigate the grain size dependent phase transition and polarization behavior of ferroelectric Ba0.9Sr0.1TiO3 (BST). Starting with nanocrystalline powders (crystalline size ≈ 22 nm), various grain sizes were obtained in nano-submicron domain (202-745 nm) by regulating the sintering temperatures (Tsin) in the range of 1050-1300°C. All samples were found to possess diffuse phase transition characteristics with frequency independent broad dielectric maxima near transition temperature due to the lattice strain contribution. Dielectric stiffness showed tarnished step-like anomalous behavior in the paraelectric state for Tsin ≥ 1200°C due to the existence of polar (superparaelectric) nano-regions generated by local polarization by off-centered Ti4+ ions exhibiting an exceptionally rare delicate polarization hysteresis loop. © 2014 Elsevier B.V. All rights reserved.