We report the synthesis of nanoparticles of Zn0.96Mn0.03Li0.01O by a low-temperature solid-state pyrolitic reaction, followed by a surfactant-assisted calcination at 400 degrees C. The X-ray diffraction and transmission electron microscopy analyses showed the formation of impurity free nanocrystals of Mn doped Li co-cloped ZnO with wurtzite structure. XPS data revealed that Mn exists in + 2 oxidation state. DC magnetization measurements as a function of field and temperature showed enhanced room temperature ferromagnetism for the surfactant-treated Zn0:96Mn0.03Li0.01O. FMR signal observed in the EPR spectrum further confirmed its ferromagnetic nature. (c) 2007 Elsevier B.V. All rights reserved.