Nanocrystalline and well dispersed barium strontium titanate (BST) powders were prepared by a novel and simple citrate precursor method. This method involved direct crystallization of a white precursor from a stable solution in the citric acid (CA)–ethylene glycol (EG)–tetrabutyl titanate–M2+ (M = Ba, Sr) system under a specific pH value range. Subsequent heat treatment of the precursor at 850 °C led to a pure phase BST powder. TG/DTA was used to examine the decomposition behaviour of the precursor. The crystalline phase and morphology of the BST powders were investigated by XRD and TEM. It was found that the BST powders synthesized by citrate precursor process were more homogeneous and uniform than that obtained by the citrate gel method.