In this paper, the dielectric and piezoelectric properties of $0.4Pb(Ni_{1/3}Nb_{2/3})O_3+0.6Pb(Zr_{405}Ti_{595})O_3+X;wt%;Fe_2O_3$ ceramics were investigated with the addition of $Fe_2O_3$ and sintering temperature. Dielectric constant and piezoelectric constant increased with amount of $Fe_2O_3$ to 0.25 wt% and then decreased the further addition of $Fe_2O_3$. It seems that $Fe_2O_3$ acts as a sintering aid at the sintering temperature of $1150^{circ}C$. By the addition of $Fe_2O_3$., sintering temperature of the system was lowered from $1250^{circ}C;to;1100^{circ}C$. The piezoelectric properties showed the maximum value of ${varepsilon}r=4669,;d_{33}=810(10^{-12}m/V)$, kp = 77 %, Qm = 55, in $0.4Pb(Ni_{1/3}Nb_{2/3})O_3;-0.6Pb(Zr_{0.405}Ti_{0.595})O_3+0.25wt%;Fe_2O_3$ ceramics having composition near the morphotropic phase boundary. The composition may be appropriate for actuator materials because of high piezoelectric constant and electromechanical coupling factor.