Polycrystalline ceramics samples having compositional formula PbZr0.588Ti0.392Fe0.01Nb0.01O3 and Pb0.98Sm0.02Zr0.588Ti0.392Fe0.01Nb0.01O3 were prepared by traditional solid state route. Sintering was carried out at 1250°C in closed alumina crucibles in lead rich atmosphere. XRD analysis confirmed formation of tetragonal perovskite structure and tetragonality was found to decrease with Sm substitution. In order to study microstructure, SEM micrographs were recorded on freshly broken pieces. The grain size was observed to decrease with Sm addition. P-E hysteresis loops were recorded at different temperatures for investigating ferroelectric properties. Sm substitution improves squareness and remanence.