We reports structural, microstructural and dielectric characteristics of Sr2+ doped PZT (50/50) ceramic. X-ray diffraction reveals that the system exhibit coexistence of two phases (Tetragonal and rhombohedral) at room temperature. Typical relaxor behavior was observed by the dielectric studies and confirmed by Vogul-Fulcher fitting. The observed relaxor was predicted as existence of nanopolar regions due to short range ordering in presence of oxygen vacancies. The evidence for oxygen vacancies was studied by conductivity and polarization studies. Moreover, at 270 C one more phase transition is noted which was ascribed to structural phase transition. Present study has scientific significance to distinguish the performance of oxygen vacancies in ferroelectric materials. Copyright© 2015 VBRI press.