Formation rate of tetragonal BaTiO$_3$powder by hydrothermal synthesis and its dielectric property were studied. Submicron tetragonal BaTiO$_3$ powders were prepared hydrothermally, using Ba(OH)$_2$.8$H_2O$, TiO$_2$(anatase) and KOH as starting chemicals. Characterization via X-ray diffractometry, field emission scanning electron microscopy confirmed that increasing calcination temperatures(from 1100 to 130$0^{circ}C$) promotes the formation of tetragonal BaTiO$_3$. Tetragonal BaTiO$_3$ ceramics, obtained by calcining at 1200 for 3 h after hydrothermal synthesis at 200 for 168 h, exhibited submicron size of 0.5 ~ 0.7 ${mu}{ extrm}{m}$ and high relative permittivity.