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Nanometer-sized α-Fe 2 O 3 particles have been prepared by a simple solvothermal method using ferric acetylacetonate as a precursor. The products were characterized by X-ray diffraction (XRD), energy dispersive X-ray microanalysis (EDAX), X-ray photoelectron spectroscopy (XPS), scanning electron microscopy (SEM), transition electron microscopy (TEM), infrared spectroscopy (IR) and thermal analysis (TG-DTA). XRD indicates that the product is single-phase α-Fe 2 O 3 with rhombohedral structure. Bundles of acicular shaped nanoparticles are seen in TEM images with an aspect ratio ~ 12; typically 8-12 nm wide and over 150 nm long. The α-Fe 2 O 3 nanoparticles posses a high thermal stability, as observed on thermal analysis traces.