We report the structural, thermal, optical, and redox properties of Fe-doped cerium oxide (CeO2) nanoparticles, obtained using the polyol-co-precipitation process. X-ray diffraction data reveal the formation of single-phase structurally isomorphous CeO2. The presence of Fe3+ may act as electron acceptor and/or hole donor, facilitating longer lived charge carrier separation in Fe-doped CeO2 nanoparticles as confirmed by optical band gap energy.