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The thin films of Ni-doped dielectric LaAlO3 (LAO) by a co-ablation of magnetic metal Ni and dielectric LAO on silicon-based substrates have been prepared by pulsed laser deposition. A significant enhancement of dielectric constant of LAO upon a Ni doping is observed. Furthermore, the dielectric modulation by applying a magnetic field to the samples is verified, obviously due to the ferromagnetism of Ni metal clusters embedded in the LAO thin films. A series of microstructural and dielectric characterizations on the as-prepared thin films has been performed and the mechanism underlying the dielectric enhancement upon the Ni doping is discussed. (C) 2004 Elsevier Ltd. All rights reserved.