Cobalt-doped (5 at. %) LiNbO3 (Co:LN) single crystalline films were prepared by combinatorial laser molecular-beam epitaxy on Al2O3 (001) substrates. The oxygen atmosphere should be severely controlled to be approximately 10 Pa to obtain stoichiometric Li/Nb concentration. Determined by asymmetric X-ray diffraction and high-resolution transmission electron microscopy, the epitaxial relationship of the sample follows (003)<100>F ∥ (003)<100>S, (110)<001>F ∥ (110)<001>S, and (113)<1̅10>F ∥ (113) <1̅10>S (F and S denote the film and the substrate, respectively). The Co:LN films have a single-phase, where Co is not metallic but in the 2+ state. Co K-edge X-ray-absorption near-edge structure spectrum determines that Co2+ ions substitute for Nb5+ lattice sites, producing oxygen vacancies to compensate for the charge nonequilibrium, and shows that the Co−O bond length is greater than that of Co:LN films grown on Si (100) substrates. The Co:LN/Al2O3 films exhibit a high Curie temperature of ∼550 K and room temperature ferromagnetism of 0.58 μB/Co arising from the bound magnetic polarons mechanism based on defects. This work opens a window to a class of single-phase multiferroics by introducing magnetic dopants to ferroelectric materials and to the mechanism of dopants induced ferromagnetism in insulators.