This investigation aims to study the effect of Fe2O3, Ni nanoparticles as a reinforcement material on the mechanical properties of unsaturated polyester (UPR) as a matrix to produce a nanocomposite material using a casting route. Various examinations and tests were conducted to define the characteristics of the manufactured nanocomposite, such as Field Emission Scanning Electron Microscopy (FESEM), Energy Dispersive Spectrometry (EDS), and Fourier Transform Infrared Spectrometer (FTIR) analysis. The mechanical tests, including tensile, bending and hardness were performed on samples at the room temperature according to ASTM standards, while the magnetic characteristics were defined by vibrating sample magnetometer (VSM). Fe2O3 nanoparticles were incorporation into unsaturated polyester resin by different weight percentages that vary from 0 wt% to 20 wt% and a constant concentration 3 wt% of Ni nanoparticles. The images of FESEM and EDS evinced the homogeneity of F2O3, Ni nanoparticles into the pure unsaturated polyester resin (UPR). While, the improvement in Young's modulus, tensile strength, bending strength, and hardness was compared with those for the UPR. The improvement was 10.02% in young's modulus, 44.08% in tensile strength, 13.55% in bending strength, and strength in hardness. Also, the magnetic properties, including saturation magnetization (Ms), residual magnetization (Mr) and coercivity force (Hc) enhanced with an increase in the concentration of nanoparticles. The preferred percentage to improve the mechanical properties was found at 15 wt% of Fe2O3 and then decreased above this concentration, whereas the enhancement in hardness was achieved at 20 wt% of Fe2O3.