Designing multifunctional materials with prominent electrical, optical, and magnetic properties is of keen interest to many technological applications. In the roadmap for designing such materials, we have investigated the rare-earth (Nd and Er)-substituted NBT using first-principles calculations. Our calculation predicts the emergence of magnetic degrees of freedom in these materials. The magnetic moments obtained, for the largest concentration of 25 %, are 1.47 and 1.49  μ B / f . u ., respectively, for Nd-NBT and Er-NBT. The mechanism for nonzero magnetic moments in (Nd/Er)-NBT is traced to the presence of unpaired f-electrons in the systems. Our simulations on magneto-optic effects show a significant Kerr signal of 0.7  ° in both the materials. This suggests rare-earth substituted NBT as potential candidates for magneto-optical applications and motivates more theoretical and experimental works along this direction.

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