Nanoparticles of pure and Ag doped TiO2 of the composition Ti1– x Ag x (x = 0%, 3%, 5%, 7%) have been successfully synthesized by sol–gel co-precipitation method. The microstructural and compositional analysis has been carried out by using Powder X-ray Diffraction (XRD), Scanning Electron Microscopy (SEM) and Energy Dispersive X-ray Analysis (EDAX). Optical and Dielectric studies have been investigated by UV-Visible spectroscopy, Fourier Transform Infrared spectroscopy (FTIR) and LCR meter. XRD, SEM and EDAX results confirmed the formation of nanoparticles with polycrystalline single phase nature with tetragonal Anatase structure. FTIR analysis was carried out to recognize the chemical bonds present in the system. The energy band gap obtained from UV-Visible spectrophotometer was found to decrease gradually with Ag doping. The complex dielectric constant, complex impedance and a.c. conductivity have been studied as the function of frequency by using LCR Meter and the results have been explained on the basis of Maxwell-Wagner model.