In this work, Sn1−xFexO2 (x = 0.00, 0.02, 0.04, 0.06 and 0.08) nanoparticles have been synthesized using ball-milling method. The average diameter of the nanoparticles decreases from 487 to 216 nm by adding Fe2O3 to the tin dioxide. The X-ray diffraction analyses confirms formation of tetragonal structure which is typical feature of SnO2 compounds. Theoretical density was found to be larger than the corresponding physical one due to the porosity of the materials. The electrical resistivity versus temperature measurements confirm that the undoped and Fe doped SnO2 nanoparticles are characterized with semiconducting behavior over the whole measurement range of temperature 300–473 K. The magnetic measurements confirm transformation from diamagnetic to ferromagnetic characteristics as Fe doping level reaches x = 0.06.