Solvothermal technique has been used for the synthesis of Fe-doped CdS nanorods (Cd1−xFexS) with (x = 0.0, 0.3, 0.5, 1.0, 1.5). Structural analysis carried out using X-ray diffraction reveals the formation of defect-free hexagonal phase of the CdS nanorods. Energy dispersive X-ray analysis confirms the presence of elements Cd, Fe and S in their stoichiometric ratio. Blue shift in the band gap, as compared to the bulk CdS, has been observed in UV–visible spectra. The decrease in the intensity of the photoluminescence peaks confirms the quenching of spectra upon Fe doping. Transmission electron microscopy, high-resolution transmission electron microscopy and selected area diffraction studies confirm the polycrystalline nature as well as growth of CdS nanorods along (112) plane. Magnetic study confirms the ferromagnetic nature of the synthesized nanorods. Magnetic saturation has been found to be 0.187, 0.300, 0.450, 0.675, 0.600 emu g−1, respectively, for undoped, 3, 5, 10, and 15 % Fe-doped CdS.