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BaTiO3–CoFe2O4 composite films were prepared on (100) SrTiO3 substrates by using a radio-frequency magnetron co-sputtering method at 750 °C. These films contained highly (001)-oriented crystalline phases of perovskite BaTiO3 and spinel CoFe2O4, which can form a self-assembled nanostructure with BaTiO3 well-dispersed into CoFe2O4 under optimized sputtering conditions. A prominent dielectric percolation behavior was observed in the self-assembled nanocomposite. Compared with pure BaTiO3 films sputtered under similar conditions, the nanocomposite film showed higher dielectric constants and lower dielectric losses together with a dramatically suppressed frequency dispersion. This dielectric percolation phenomenon can be explained by the 'micro-capacitor' model, which was supported by measurement results of the electric polarization and leakage current.