This article reports the optical and magnetic properties of Cu(1−x)DyxO (x = 0.02 and 0.05) nanoparticles (NPs) synthesized via coprecipitation. An increase in Dy doping causes a red shift in the bandgap, and the X‐ray photoelectron spectroscopy reveals 2+ and 3+ valence states for both Cu and Dy ions, along with oxygen vacancies. The isothermal magnetizations fit well with a combination of linear antiferromagnetic and Langevin components. In particular, Dy‐doped CuO exhibits low‐temperature ferromagnetism driven by interactions between unpaired electrons from vacancies and Dy ions, promoting localized magnetic moments and enhancing ferromagnetic ordering.