ETHANOL dehydration over Fe₂O₃-CeO₂ nanocomposite with …… different Fe₂O₃ wt% loadings was investigated. For comparison the pure Fe₂O₃ and CeO₂ were also prepared. The different nanocomposite samples were prepared via a novel modified co-precipitation method. Pure Fe₂O₃ and CeO₂ were prepared by conventional chemical precipitation method. The as-prepared catalysts were characterized by the aid of XRD, HRTEM, BET, TGA and XRF techniques. The results revealed that Fe₂O₃ and CeO₂ produce a solid solution up to 15% Fe₂O₃. In the samples of higher Fe₂O₃ content, segregation of Fe₂O₃ on the surface were evidenced. Catalytic conversion of ethanol yielded mainly dehydration products with a distinguished activity toward ethylene. The highest ethanol conversion and maximized ethylene selectivity were achieved on the Fe₁₅Ce₈₅ catalyst and its selectivity achieves 90%. While ethylene yield increased over all catalysts by increasing the reaction temperature, production of diethyl ether and acetaldehyde was favored at low temperatures with a minor yield.