Nb5+-doped γ-Fe2O3 was synthesized by sol–gel method followed by calcination at various temperatures from 200 to 700 °C, analyzed using Powder X-ray Diffraction (PXRD), Transmission Electron Microscopy (TEM), Energy Dispersive X-ray Spectroscopy (EDS) and Mössbauer Spectroscopy. PXRD results show the formation of γ-Fe2O3 at 300 °C and it begins to transform to α-Fe2O3 at 350 °C for pure and 2 at.% Nb-doped samples. As the Nb doping increases (≥3.8 at.%), the transformation was suppressed up to 600 °C. TEM EDS confirms the incorporation of Nb to γ-Fe2O3 lattice in 9.1 at.% Nb sample calcined at 500 °C. At elevated temperature of 700 °C, γ-Fe2O3 went through full transformation to α-Fe2O3 by expelling large amount of Nb to the surface forming FeNbO4. TEM EDS confirms the compositional change during this process with reduced Nb content in α-Fe2O3 and Nb-rich nanoparticle on the surface of α-Fe2O3. Superparamagnetic properties were observed for Mössbauer spectra when the Nb doping increased, which is caused by decreased particle size. The slight increase in internal magnetic field also indicated the transformation from γ-Fe2O3 to α-Fe2O3. High Nb doping with 20 and 40 at.% shows the formation of FeNbO4 at lower temperature where limited or almost no Nb substitution in α-Fe2O3 was detected by EDS.