We report the preparation, characterization, and magnetic properties of highly crystalline colloidal Fe-doped indium oxide nanoparticles. The nanoparticles have been prepared in high yields by simple one-pot thermal decomposition of indium and iron precursors in hexadecylamine and can be easily dispersed in solvents like chloroform and toluene. Detailed X-ray diffraction, microstructure, and Raman studies reveal that the nanoparticles are single phase cubic bixbyite structure without any parasitic secondary phases. DC magnetization studies as a function of temperature and field indicate that nanoparticles are weakly ferromagnetic at room temperature (RT). This observation is further confirmed by the electron paramagnetic resonance spectra of the samples, which show a distinct ferromagnetic resonance signal at RT.