The Dy2O3 doped (Ba0.7Sr0.3)TiO3 ceramics for capacitor applications were prepared by the conventional solid state method. The effects of different content of Dy2O3 on the microstructure and dielectric properties of (Ba0.7Sr0.3)TiO3 were investigated by the scanning electron microscope, X ray diffractometer and LCR measure system. It has been found that the average grain size of (Ba0.7Sr0.3)TiO3 ceramics decreases with the increase of Dy2O3 addition content and Dy2O3 doped (Ba0.7Sr0.3)TiO3 ceramics are single phase solid solution with perovskite structure. Dy2O3 can significantly reduce the relative dielectric constant and dielectric loss by occupying the A site orB site in perovskite structure, causing the unit cell distortion and thus resulting in the weakening of spontaneous polarization. With the increase of Dy2O3 addition content, the Curie temperature of (Ba0.7Sr0.3)TiO3 ceramics shifts to lower temperautre range. The relative dielectric constant and dielectric loss of Dy2O3 doped (Ba0.7Sr0.3) TiO3 system are significantly influenced by temperature.