Bismuth ferrite (BiFeO₃) is an auspicious multiferroic material exhibiting both ferroelectric and ferromagnetic properties, making it attractive for diverse technological applications. In this study, high purity BiFeO₃ nanoparticle nanoparticles were synthesised using a simple and efficient soft chemical route with tartaric acid as a promoter, yielding nanostructures with an average particle size of 16 nm. The nanoparticles demonstrated enhanced ferromagnetic properties within a specific particle size range alongside distinct linear optical characteristics in an isotropic environment. In negative anisotropic environments, such as N-(4-methoxybenzylidene)-4-butylaniline (MBBA) liquid crystals, varying the weight percentage of BiFeO₃ nanoparticles resulted in notable changes in dielectric anisotropy. A peak dielectric anisotropy was observed at a nanoparticle concentration of 0.3%wt. Furthermore, frequency-dependent anisotropy measurements revealed trends consistent with pure liquid crystal samples as nanoparticle concentrations increased. The unique magnetic, optical, and dielectric properties of BiFeO₃ nanoparticles position them as excellent candidates for a broad range of applications, including electronics, spintronics, catalysis, and biomedical technologies.