Ni1-xFexO (x = 0 and 0.03) nanoparticles are synthesized by a chemical route. XRD and TEM measurements confirm phase purity and crystallinity of the nanoparticles. Fe substitution in NiO reduces considerably the average particle size of the nanoparticles. The pristine NiO sample with size. 14 nm and Fe-substituted sample having size 7 nm show room temperature ferromagnetism. The pristine NiO having 31 nm size and Fe-substituted sample with size 25 nm are found to be antiferromagnetic. The M-H and M-T behavior of the pristine and Fe-doped samples are explained with a core-shell model with an antiferromagnetic core and a ferromagnetic shell. The disordered spins at the shell give rise to a spin-glass like frozen state below 10 K. The obtained room temperature ferromagnetism in the pristine and Fe-doped NiO has been attributed to particle size effect. (C) 2012 Elsevier Ltd. All rights reserved.