The mechanical properties of nanocomposites obtained by incorporation of fairly uniform hematite nanorods (α-Fe2O3 NRs) into epoxy resin were studied as a function of the content of the inorganic phase. A thorough microstructural characterization of the α-Fe2O3 NRs and the nanocomposites was performed using transmission electron microscopy (TEM) and atomic force microscopy (AFM). The TEM measurements revealed rod-like morphology of the nanofiller with a uniform size distribution (8.5 nm×170 nm, diameter×length). High-magnification TEM and AFM measurements indicated agglomeration of α-Fe2O3 NRs embedded in the epoxy resin. Stress at break, strain at break, elastic modulus and tensile toughness of the nanocomposites were compared with the data obtained for pure epoxy resin. Significant influence of nanofiller on the mechanical properties of epoxy resin, as well as on the glass transition temperature, could be noticed for samples with low contents of the inorganic phase (up to 1 wt. %). [Project of the Serbian Ministry of Education, Science and Technological Development, Grant no. 45020]