It is known (although not well understood) that the dielectric constant of a capacitor in multilayer form (with Ag-based electrode) is somewhat higher than that in disc form. In this work, we have systematically studied the effect of Ag addition on the densification and dielectric characteristics of a barium titanate based composition (Z5U type as per Electronic Industry Association (EIA) classification) in disc form. It was found that a small amount of silver addition (in the range of 0.1 wt%) improves the sintered density and dielectric constant values. Possible mechanisms for the observed behavior are delineated.