This study examined structural, optical and magnetic properties of ITO (In0.95Sn0.05)2O3 and Cu doped ITO (In0.90Sn0.05Cu0.05)2O3 nanoparticles synthesized by solid state reaction method. The synthesized nanoparticles were subjected to structural, optical and magnetic studies. The structural properties of the nanoparticles were carried out using XRD, Raman, FT-IR characterization techniques. Optical properties of the samples were studies using UV-Vis-NIR spectrophotometer. The magnetic measurements were carried out using vibrating sample magnetometer. The ITO (In0.95Sn0.05)2O3 nanoparticles exhibited room temperature ferromagnetism with clear hysteresis loop. The strength of magnetization decreased in Cu doped ITO (In0.90Sn0.05Cu0.05)2O3. The ITO nanoparticles were also exhibited ferromagnetism at 100 K with a magnetic moment of 0.02 emu/g. © 2016 Author(s).