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The present study investigates the optical and magnetodielectric properties of Bi0.9La0.1FeO3 (BLFO) and its composite (0.9) Bi0.9La0.1FeO3/(0.1) La0.7Sr0.3MnO3 (BLFO 10) at room temperature. Crystal structure is confirmed by X-ray diffraction pattern and W–H plots were used to explore the strain developed in the samples. Fourier transform infrared spectra (FTIR) confirmed the presence of metal–oxygen bonds in the samples. The optical absorption spectra indicate an enhancement in the band gap energy of the composite on the addition of La0.7Sr0.3MnO3 (LSMO). The photoluminescence (PL) spectrum reveals that the recombination of electron–hole pairs was suppressed in composites and the chromaticity coordinates were found to be nearly close to the white light region. The multiferroic behavior analyzed through magnetodielectric (MD) analysis shows 4.44% MD effect in BLFO and − 0.45% in BLFO 10 at 1 kHz frequency. By analyzing the thermodynamic equation, the existence of magnetoelectric coupling in BLFO and BLFO 10 was confirmed and magnetodielectric interaction coefficients were also calculated.