Nanocrystalline CaTiO3 powders doped with Fe2O3 have been prepared using a soft chemical route. Precipitation of CaTiO3 nanocrystals has been studied by monitoring the exothermic peak in their DSC spectra. The crystal growth temperature of the samples depends on the concentration of iron. Surface morphology, crystal structure, optical and electrical properties of the nanostructures are investigated. X-ray diffraction study shows that the as-prepared powders are amorphous in nature and CaTiO3 phase formation starts at around 500 0C. Rietveld analysis revealed that the particle size of iron substituted CaTiO3 is in nanometer range. Optical bandgap of the nanostructures varies from 4.3 to 3.7 eV for the variation of iron concentration from 0.05 to 0.2 mole %.