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Structural, electronic, optical and thermodynamic properties of the SrTeO alloys (0 ≤ x ≤ 1) in rock-salt phase are calculated using the full potential-linearized augmented plane wave (FP-LAPW) method within density functional theory. The exchange-correlation potential for structural properties was calculated by the standard local density approximation (LDA) and GGA (PBE) and the new form of GGA (WC) which is an improved form of the most popular Perdew-Burke-Ernzerhof (PBE), while for electronic properties, in addition to LDA, GGA corrections; Engel-Vosko GGA (EV-GGA) and modified Becke-Johnson (mBJ) schemes were also applied. The results show that the use of GGA (WC) in our calculations is more appropriate than GGA and LDA and gives a good description of structural properties such as lattice parameters and bulk modulus. Our investigation on the effect of composition on lattice constant, bulk modulus and band gap for ternary alloys shows almost nonlinear dependence on the composition. In addition to FP-LAPW method, the composition dependence of the refractive index and the dielectric constant was studied by different models. On the other hand, the thermodynamic stability of this alloy was investigated by calculating the excess enthalpy of mixing Δ H as well as the phase diagram. [ABSTRACT FROM AUTHOR]