Pure and Iron doped In2O3 thin films were deposited onto Corning 7059 glass substrates using an electron beam evaporation technique and then the films were air annealed at 250 °C, 350 °C and 450 °C, respectively for 5 hours. The effect of annealing temperature on structural, optical and magnetic properties of the thin films has been investigated. All the pure and Fe doped In2O3 films were found to be ferromagnetic at room temperature. The saturation magnetization of pure and Fe doped In2O3 thin films decreased with increase of annealing temperature.