Nd‐doped GaN powders are synthesized by a direct nitridation of Ga2O3, and the structural, optical, and magnetic properties of the products with different Nd concentrations are investigated. It is found that the Nd‐doped GaN powders have wurtzite structure and exhibit a broad blue emission related with defects. The stable room‐temperature ferromagnetism is observed in the products, which is dependent on the Nd concentration. The possible origin of the ferromagnetism is discussed.