The crystal structure, grain growth behavior, and dielectric properties of BaTiO3 have been studied with the addition of Dy2O3. The powders were synthesized at ratios of (100-x)BaTiO3-xDy2O3 (mol%, x = 0, 0.5, 1.0, 2.0) by a conventional solid-state synthesis, and the powder compacts were sintered at 1250°C for 2 hours in air. As the amount of added Dy2O3 was increased, the crystal structure of the sintered samples changed from a tetragonal to a pseudo-cubic structure, and the tetragonality decreased. In addition, a secondary phase of Ba12Dy4.67Ti8O35 appeared when Dy2O3 was added. The average grain size after sintering decreased and abnormal grains appeared as the amount of Dy2O3 increased. It can be explained that the grain growth behavior of the Dy2O3 added-BaTiO3 occurs due to the two-dimensional nucleation and growth, and is governed by the interface reaction. Further, the correlation between crystal structure, microstructure, and dielectric properties was discussed.