Planar and channel waveguides were fabricated in Fe doped KTiOPO4 (KTP) using the Rb+:K+ ion-exchange process. These waveguides were characterized optically. It was found that the index change is smaller than that obtained using undoped KTP substrates. However, the diffusion depth is larger. The Fe ions appear to be an effective means to modify the properties of ion-exchanged KTP waveguides. The photorefractive effect (PRE) in Fe doped KTP channel waveguides was also investigated at wavelengths of 0.543, 0.6328, and 0.83 μm. PRE was not observed, indicating that unlike that in LiNbO3 or KNbO3, Fe ion is not a major contributing factor in KTP.