K0.5Bi0.5TiO3(KBT)nanocrystalline particles were hydrothermally synthesized from Bi(NO3)3·5H2O, TiO2 and KOH. The crystal phase, chemical composition and microstructure were characterized by XRD, XRF, Raman scattering spectroscopy and TEM. The results indicated that the products were pure perovskite structured K0.5Bi0.5TiO3 with chemical stoichiometry and perovskite structure. The TEM observation revealed that the particles possessed a feature of cubic shape and a nano-scale of about 40 nm. The KBT ceramics sintered at 1 040 ℃ from hydrothermal powders show higher density and better electric properties than that prepared by a solid-state reaction method.