Composites of hematite (α-Fe 2 O 3 ) nanoparticles with different materials (NiO, TiO 2 , MnO 2 and Bi 2 O 3 ) were synthesized. Effects of different materials on the microstructure and optical band gap of α-Fe 2 O 3 nanoparticles were studied. Crystallite size and strain analysis indicated that the pure α-Fe 2 O 3 nanoparticles were influenced by the presence of different materials in the composite sample. Crystallite size and strain estimated for all the samples followed opposite trends. However, the value of direct band gap decreased from ∼2.67 eV for the pure α-Fe 2 O 3 nanoparticles to ∼2.5 eV for α-Fe 2 O 3 composites with different materials. The value of indirect band gap, on the other hand, increased for all composite samples except for α-Fe 2 O 3 /Bi 2 O 3 .