TiO2/Fe2O3 nanocomposite was fabricated by a hydrolysis-precipitation approach, with TiCl4 as precursor and Fe2O3 as support. The crystal phase, diameter and morphology of the sample particle were characterized by X-ray diffraction, transmission electron microscope. The results show that the samples are composed of haematite and rutile. The morphology and diameter of rutile particle, coating effect and weight percentages of haematite and rutile are related to the preparing temperature and molar ratio of Fe/Ti. The photocatalytic activity of the prepared photocatalyst was estimated in an aqueous solution at ambient temperature of 303K. The results imply that the photocatalytic activity of the sample is higher than that of phase pure rutile, related to Fe/Ti molar ratio and its preparing temperature. These results can be attribute to the microsturcture of the sample. A synergistic effect exists between titania and haematite in the nanocomposite.