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A study of the effect of the presence of Y3Fe5O12 (YIG) in the dielectric properties of the CaCu3Ti4O12 (CCTO) is presented. The samples were prepared by the solid state method. Mechanical alloying followed by the solid state procedure had been successfully used to produce powders of CCTO and YIG to be used in the composites. We also look at the effect of the grain size of the YIG and CCTO in the final properties of the composite. The samples were analyzed using X-Ray diffraction and scanning electron microscopy (SEM). Dielectric permittivity had been measured at 2.7 and 5.0 GHz, using the small perturbation theory.