Nanometer-sized 𝛼-Fe₂O₃ 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-Fe₂O₃ 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-Fe₂O₃ nanoparticles posses a high thermal stability, as observed on thermal analysis traces.