Novel Raman spectra were discovered in (Ba1−xSmx)(Ti0.95−x/4Ce0.05)O3 (0.03≤x≤0.10) ceramics and investigated in relation to the fluorescent effect of Sm3+ ions. Special interest was paid to analyze the dielectric response and defect chemistry associated with the structural evolution by X-ray diffraction (XRD), scanning electron microscopy (SEM), electron paramagnetic resonance (EPR), Raman spectroscopy (RS), and dielectric measurements. Complete solid solutions, known as BS5TC5 and BS6TC5 for (Ba1−xSmx)(Ti0.95−x/4Ce0.05)O3 ceramics were found to form at x=0.05 and 0.06 (approximately) and exhibit a cubic structure and a non-uniform microstructure. BS6TC5 exhibited a strong high-k diffuse phase transition (DPT) behavior (=9300, TC=78 °C), a lower dielectric loss (tan δ<0.05), and a feature of mixed valence at Ba sites (Sm3+, Ce3+) and Ti sites (Sm3+, Ce4+). The BSTC ceramics with x=0.09 met the Y5V specification. A weak g=2.004 EPR signal associated with ionized Ti-vacancy defects appeared in single-phase ceramics.