For the present study, two phase ceramic (ferroelectric-ferrite) composites using La substituted lead zirconate titanate (PLZT) and Ni-Zn ferrite (NZF) with compositional formula x Ni0.8Zn0.2Fe2O4-(1-x) Pb0.99La0.02Zr0.65Ti0.35O3 (x = 0, 0.05, 0.10 and 0.15) were synthesized by conventional solid state reaction route. From X-ray analysis, it was confirmed that no chemical reaction took place between individual phases. Dielectric properties were studied as a function of temperature and frequency. Decrease in dielectric constant and increase in dielectric loss was observed with increasing ferrite content. Anomalous behavior in paraelectric region was observed for all the composite samples (x = 0.05, 0.10 and 0.15) at low frequencies. To study ferroelectric and ferromagnetic properties, P-E and M-H hysteresis loops were recorded respectively. Effect of electric field on magnetization was studied for all composite samples to confirm magnetoelectric coupling.