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The role of Sn doping on the structural, magnetic and power loss properties of Li0.5+0.5xSnxFe2.5-1.5xO4 ferrites (x = 0.0 to 0.20 in step of 0.05) + 0.5 wt % Bi2O3, prepared by solid state technique, has been investigated. X-ray diffraction reveals that Sn ions doped in lithium ferrite up to small concentration. Surface morphology recorded by SEM micrographs illustrates uniform, well connected grain growth in all samples. A small concentration of Sn doping in lithium ferrite improves the grain growth and densification. Magnetic parameters have been evaluated by M − H curves measured at room temperature by VSM. Saturation magnetization was found to be decreasing with Sn concentration in Li0.5+0.5xSnxFe2.5-1.5xO4 ferrites. In view of applicability of prepared samples for power devices, the magnetic permeability (μ* = μ′-jμ'′) has been recorded in the frequency range of 1 MHz–103 MHz at room temperature. Further, Power loss response has also been recorded in presence of magnetic induction (B = 10 mT) in frequency range of 50 kHz to 3 MHz. It was depicted a significant reduction in power loss in Sn = 0.05 doped lithium ferrite sample. Reduction in power loss with Sn doping makes it suitable for power applications.