The interparticle magnetic interactions of hematite (alpha-Fe2O3) nanoparticles were investigated by temperature and magnetic field dependent magnetization curves. The synthesis were done in two steps; milling metallic iron (Fe) powders in pure water (H2O), known as mechanical milling technique, and annealing at 600 degrees C. The crystal and molecular structure of prepared samples were determined by X-ray powder diffraction (XRD) spectra and Fourier transform infrared (FTIR) spectra results. The average particle sizes and the size distributions were figured out using transmission electron microscopy (TEM) and scanning electron microscopy (SEM). The magnetic behaviors of alpha-Fe2O3 nanoparticles were analyzed with a vibrating sample magnetometer (VSM). As a result of the analysis, it was observed that the prepared alpha-Fe2O3 nanoparticles did not perform a sharp Morin transition (the characteristic transition of alpha-Fe2O3) due to lack of unique particle size distribution. However, the transition can be observed in the wide temperature range as "a continuously transition". Additionally, the effect of interparticle interaction on magnetic behavior was determined from the magnetization versus applied field (sigma(M)) curves for 26 +/- 2 nm particles, dispersed in sodium oxalate matrix under ratios of 200:1, 300:1, 500:1 and 1000:1. The interparticle interaction fields, recorded at 5K to avoid the thermal interactions, were found as similar to 1082 Oe for 26 +/- 2 nm particles. (C) 2011 Elsevier B.V. All rights reserved.