An alternative forced hydrolysis approach for the synthesis of beta -FeOOH of varying dimensions was achieved. The beta -FeOOH particles were converted into gamma -Fe2O3 in a colloidal process, which eliminated the agglomeration of gamma -Fe2O3 particles. The acicular gamma -Fe2O3 nanoparticles could be readily dispersed into an organic solvent. Preliminary studies have demonstrated that the dispersion of the gamma -Fe2O3 nanorods in a polymer matrix is feasible leading to an organic-inorganic nanocomposite.