In this study, nanosized ZnO and Zn1−xFexO powders were synthesized using the flame aerosol synthesis (FAS) method. The microstructure of the ZnO powder shows a significant difference with different precursor concentrations. By adding Fe to the precursor, nanosized Zn1−xFexO powder (x = 0~0.1) can be easily fabricated. The phase formation, microstructure, and infrared absorption properties were systematically investigated by XRD, SEM, TEM, and IR. With the substitution of Fe into the Zn site, lattice distortion occurred, resulting in excellent infrared absorption properties. Compared to other conventional synthesis methods, the FAS method has the advantages of high yield, high crystallinity, and low cost; furthermore, nanosized powder is easily obtained. The FAS method is believed to be one of the best choices for the large-scale production of ZnO and Zn1−xFexO powders.