Abstract. In this work, the Co 2+ ions doping effect on the magnetic behaviour of In 2 O 3 nanoparticles (NPs) has been discussed. The In 0.94 Co 0.06 O sample was prepared by solid state reaction method. According to XRD, the single crystalline phase was identified as the cubic bixbyite crystal structure and doping effect of prepared NPs. The magnetic study at room temperature (RT) revealed that the prepared Co doped In 2 O 3 sample had achieved overlapped paramagnetic (PM) properties defeating the diamagnetic (DM) properties of In 2 O 3 . Furthermore, it was found that the ferromagnetic (FM) is clearly induced by post-annealing in hydrogen atmosphere at 50 and 300 K. This study also depicts that the sample is finally returned to the PM state after re-heating.