The microstructure, dielectric and piezoelectric properties of Zr doped BaTiO3 ceramics sintered at optimum temperature, are investigated. High energy ball milling technique is adopted to realize nano-sized powders of Ba(Zr0.15Ti0.85)O3 ceramics. Increased boundary mobility of fine powders aided to obtain a relative density of >98.8% of theoretical density corresponding to ceramics under study. Internal stresses in these ceramics are found to be relieved by grain-boundary sliding. The Ba(Zr0.15Ti0.85)O3 ceramics synthesized at relatively low sintering temperatures exhibit remarkable, enhanced dielectric properties viz. improved polarization, high unipolar strain values comparable to Zr doped BaTiO3 single crystals of same composition, at relatively lower electric fields and also exhibit better fatigue tolerant properties. The underlying mechanisms responsible for superior dielectric, ferroelectric and piezoelectric properties are discussed. © 2020 Korean Physical Society