Single phase Mn (2.5 at%) doped ZnO nanocrystalline samples were synthesized by reverse micelle method as characterized by Rietveld refinement analysis of X-ray diffraction data, high resolution transmission electron microscopy and selected area electron diffraction analyses. The X-ray photoelectron spectroscopy and electron paramagnetic resonance (EPR) studies indicated that manganese exist as Mn2+ in ZnO lattice. DC magnetization measurements as a function of field and temperature, of 2.5 at% Mn doped ZnO nanoparticles annealed at 675 K, showed room temperature ferromagnetism (RTF). This observation is further confirmed by the EPR spectrum of the sample, which shows a distinct ferromagnetic resonance signal at room temperature. These results indicate that the observed RTF in Mn-doped ZnO may be attributed to the substitutional incorporation of Mn at Zn sites. (c) 2007 Elsevier B.V. All rights reserved.