The influence of uniaxial prestress on dielectric and piezoelectric performance was studied for soft lead zirconate titanate piezoceramics. High electric field induced polarization and longitudinal/transverse strain were measured at different compression preload levels of up to −400 MPa. The parameters evaluated included polarization/strain outputs, dielectric permittivity, piezoelectric constants, and dissipation energy as a function of the mechanical preload and electric-field strength. The results indicate a significant enhancement of the dielectric and piezoelectric performance within a certain prestress loading range. At much higher stress levels, the predominant mechanical depolarization effect makes the material exhibit hardly any piezoeffect. However, the enhanced performance achieved by a small stress preload is accompanied by an unfavorable increased hysteresis, and consequently, increased energy loss, which is attributed to a larger extrinsic contribution due to more non-180° domain switching induced by the combined electromechanical load.