In this research, for the first time, the effect of air quenching on the microstructural and electrical properties of (In, Nb) co-doped TiO2 was investigated. The FE-SEM images showed that the air quenching has no effect on microstructure of co-doped TiO2. However, air quenching affected the electrical properties so that the dielectric constant in the frequency of 1 kHz at room temperature sharply enhanced from 21*103 to 26*104 and the dielectric loss surprisingly decreased from 0.6 to 0.1. This incredible improvement in the dielectric properties is attributed to the electron-pined defect dipoles which has been activated through air quenching.