Fe-doped CdS nanoparticles (Cd 1−x Fe x S) (x = 0.0, 0.03, 0.05, 0.10) were synthesized using hydrothermal technique. X-ray diffraction (XRD) confirmed hexagonal structure of the nanoparticles with sizes 39.9, 22.8, 13.3, and 11.4 nm, respectively, for undoped 3 %, 5 % and 10 % Fedoped CdS nanoparticles. No extra peaks were found in energy-dispersive spectroscopy (EDS) showing absence of any impurity. Transmission electron microscopy (TEM) confirmed uniform spherical morphology of synthesized nanoparticles. The UV-visible absorption spectra confirmed a blue shift in the case of Fe-doped CdS nanoparticles. Photoluminescence (PL) technique revealed the occurrence of green emission in the CdS nanoparticles. A vibrating sample magnetometer (VSM) provided the hysteresis curves with magnetic saturation values of 0.015, 0.027, 0.048, and 0.071 emu/g for undoped, 3 %, 5 %, and 10 % Fe-doped CdS nanoparticles, respectively.