Nanocrystalline powders of Fe-doped SnO2 (Sn1-xFexO2) (x = 0.00, 0.01, 0.03, 0.05) were prepared by a hydrothermal method. The powders were calcined in argon atmosphere at 600 °C for 2 h, causing phase transition from diamagnetic and weak ferromagnetic behavior to a ferromagnetic state. No trace and other magnetic impurity phases was detected in the samples with Fe content up to 3%. The calcined samples of Fe-doped SnO2 revealed the room temperature ferromagnetism with highest magnetization values of 434.07 memu/g at 15 kOe for x = 0.05. The room temperature ferromagnetism of samples originated from oxygen vacancies that occurred in the argon calcination process. In particular, oxygen vacancy shows a significant role in ferromagnetic coupling corresponding to F-center interaction.