The iron oxide nanoparticles have been prepared by mechanical milling method using Logas natural sand as a raw material. The products of ball milling were doped with Ni nanoparticles at different doping concentrations (0, 1, 2, 3, and 4 wt.%). The effect of doping concentration on the structural, magnetic, and optical properties was studied. The structural, magnetic, and optical properties of the prepared samples were studied using an X-ray diffractometer (XRD), vibration sample magnetometer (VSM), and UV-Vis spectroscopy, respectively. The X-ray diffraction pattern shows that the ball milling product is hematite (α-Fe2O3) nanoparticles and highly crystalline with a rhombohedral structure. It is very interesting to find that Ni doping nanoparticles cannot change the structure of iron oxide nanoparticles however, the average crystallite size decreases from 39.43 to 32.64 nm with increasing Ni doping concentration from 0 to 4 wt. %, respectively. The crystallite size based on the dominant peak (104) varies as Ni doping concentration increases. The magnetic properties of the samples show the ferromagnetic nature of the prepared nanoparticles. The saturation, remanence magnetization, and coercivity increase with increasing Ni concentration. The optical band gaps calculated through UV-Vis absorption measurements confirm that the decrease in crystallite size is accompanied by a decrease in the band gap value from 2.03 to 1.92 eV as the doping concentration increases from 0 to 4 wt. %.This study demonstrates the simple way of preparing Ni-doped iron oxide nanoparticles for environmental application.