An enhancement in multiferroic properties has been achieved for chemically prepared BFO nanoparticles by doping with erbium (Er). XRD along with electron microscopy study reveals the phase purity and nanocrystalline nature of BFO. Enhancement of both the magnetic moment and resistivity is observed by virtue of Er doping. The observed enhanced magnetic moment is considered to be associated with smaller crystallite whereas increase of resistivity may be attributed to a decrease of oxygen vacancies. Doping also display an improvement of leakage behaviour and dielectric constant in nanocrystalline BFO, reflected in well-developed P-E loop. In addition, large enhancement in magnetodielectric coefficient is observed because of Er doping. Therefore, the results provide interesting approaches to improve the multiferroic properties of BFO, which has great implication towards its applications. (C) 2015 Elsevier B.V. All rights reserved.