Nanocomoposites of Ni0.5Zn0.5Fe2O4 (NZF) and LiNbO3 were synthesized. The average diameter of nanoparticles was 9.5 nm and lithium niobate had a thickness of similar to 2.5 nm. The sample showed room temperature (RT) ferromagnetism. A magneto-dielectric coefficient of 20% was observed at a magnetic field of 0.5 T. This was explained using inhomogeneous conductor model. It arose due to NZF resistance decrease by about 35% for the applied magnetic field. Nanoindentation studies on the sample showed a creep strain rate (similar to 10 (3) s (1)) at RT. This was ascribed to a large grain boundary diffusion of Fe3+ ions in NZF phase. (C) 2012 Elsevier B. V. All rights reserved.