Organic-molecule-stabilized ultrafine bismuth phosphate was synthesized by applying a wet chemical complexation-mediated route. Structural analysis confirmed the formation of monoclinic-phase nanoparticles made up of four-coordinated PO4 tetrahedral and eight-coordinated BiO8 polyhedral units. The dielectric, electrical conductivity, and impedance behaviour of the synthesized material was investigated under a wide range of frequency and temperature conditions. An alternating current conductivity study confirmed that the conduction process was followed by small and large polaron tunnelling mechanisms. An electric field-induced polarization study showed the formation of a hysteresis loop, generated as a result of the strong dipolar interactions through the Biδ+-Oδ--type covalent bonds.