Iron oxide nanoparticles have been produced on the top surface of aligned multi-walled carbon nanotubes by CO(2) laser processing. They were characterized to be Fe(2)O(3) nanoparticles by X-ray photoelectron spectroscopy, X-ray diffraction and high resolution scanning electronic microscopy. Absorption bands in the visible region were found to be redshifted compared with the absorption of Fe(2)O(3) nanoparticles prepared by traditional chemical methods. Photoluminescence from these Fe(2)O(3) nanoparlicles shows a broad emission band in the near infrared region for both excitations at 514 and 633 nm. Particle size is considered to be responsible for the unique optical properties of the Fe(2)O(3) nanoparticles. (C) 2008 Elsevier Ltd. All rights reserved.