In this investigation, ZnO nanoparticles were prepared by a simple and rapid method. This method is based on the short time solid state milling and calcinations of zinc acetate and citric acid powders. The samples were characterized using x-ray diffraction (XRD), Transmission Electron Microscope (TEM), Fourier transform infrared (FTIR) spectroscopy, photoluminescence and UV-vis spectroscopy. Calculation based on the XRD data shows that, the average sizes of ZnO particles are in agreement with TEM images and the size of particles increases by increasing the calcination temperature. Also the band gap of samples decreased from 3.29 eV to 3.23 eV by increasing calcination temperature from 350°C to 600°C. Photoluminescence analyses shows that many defects such as interstitial zinc, zinc vacancy and oxygen vacancy are responsible for the observed optical properties. Also effect of Fe doping with various concentrations on the structural, optical and magnetic properties of ZnO were investigated. Magnetic measurements indicate that Zn 1?x Fe x O (x = 0.03, 0.05, 0.075, 0.1) samples are ferromagnetic at room temperature.