Two different BaTiO3 (160nm) nano-powders coated with Y and with Dy were fabricated by an aqueous chemical coating method, and their dielectric properties and microstructures were investigated with X-ray diffraction, Impedance analyzer, SEMand TEM. Y and Dy were coated on the BaTiO3 powder using nitrates. Coated BaTiO3 powderswere pressed in a disk shapeand sintered at 1150~1200°C for 2 hoursin reduced atmosphere of 10%H2- 90%N2. Coating layer of the BaTiO3 particle was thin with a thickness of 3~5nm. Coated BaTiO3sintered sample exhibited alarger lattice parameter (a, c) and smaller tetragonality (c/a)than pure BaTiO3one. Y coated BaTiO3sample sintered at 1200°C showed good dielectric propertieswith ahigh dielectric constant of around 2000 and a stabletemperature coefficient of capacitance (TCC).