Nanocomposites have improved aspect ratio and better mechanical properties when compared to the composites which had structures less than 100nm They are 1000 times tougher compared to conventional composites. Besides mechanical properties, nanocomposites also have improved electrical conductivity, thermal stability, chemically resistant, flame retardant and low permeability. TiO2 finds its best application in the field of photo catalytic activity and it is used in sunscreen lotions since it is resistant to UVA(315-400nm) and UVB(280-315nm). Fe2O3 is used as the pigment in construction of roof tiles, pavers, plaster etc. It is used as a polishing agent for glass, diamonds and it is dental abrasive. It is reported that a nanocomposites of TiO2- Fe2O3 have improved visible water light splitting, and photocatalytic degradation of pollutants.The acute toxicity of the oxide nanoparticles make them suitable for their applications.The objective of the present work is to synthesize composites of titanium dioxide -iron oxide by a simple sol gel route in laboratory scale and to validate them as nanoparticles for preparation of nanofluids.