NiO nanorods of diameter 50-100 nm and length 400-500 nm doped with Fe have been synthesized in the presence of ethylenediamine by the hydrothermal method. The lattice constant does not change appreciably with Fe doping. Nanorods are highly oriented along the (111) direction having hexagonal facet ends. The average aspect ratio of synthesized nanorods varies between 4 and 8. Doping of Fe into NiO introduces an optical absorption band at 220 nm. Pure NiO nanorods exhibit weak ferromagnetic and antiferromagnetic like behaviors. The introduction of Fe within NiO lattice produces a significant ferromagnetic property with a coercive field of 614 Oe.