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Solid solution of nickel ferrite (NiFe2O4) and barium titanate (BaTiO3), (100-x)BaTiO3-(x) NiFe2O4 has been prepared by solid state reaction. Compressive strain is developed in NiFe2O4 due to mutual structural interaction across the interface of NiFe2O4 and BaTiO3 phases. Quantitative analysis of X-ray diffraction and X-ray photo electron spectrum suggest mixed spinel structure of NiFe2O4. A systematic study of composition dependence of composite indicates BaTiO3 causes a random distribution of Fe and Ni cations among octahedral and tetrahedral sites during non-equilibrium growth of NiFe2O4. The degree of inversion decreases monotonically from 0.97 to 0.75 with increase of BaTiO3 content. Temperature dependence of magnetization has been analyzed by four sublattice model to describe complex magnetic exchange interactions in mixed spinel phase. Curie temperature and saturation magnetization decrease with increase of BaTiO3 concentration. Enhancement of strain and larger occupancy of Ni2+ at tetrahedral site increase coercivity up to 200 Oe. Magnetostructual coupling induced by BaTiO3 improves coercivity in NiFe2O4. An increase in the demagnetization and homogeneity in magnetization process in NiFe2O4 is observed due to the interaction with diamagnetic BaTiO3. [ABSTRACT FROM AUTHOR]