Specimens of Fe-doped Cu2O (1% and 2%) were prepared using chemical co-precipitation method. 1% Fe-doped samples were single phase and showed paramagnetic behavior at 300 K and diamagnetic behavior at 77 K; un-doped Cu2O is diamagnetic at 300 K. From DRS measurements, a red shift was observed for the Fe-doped samples. Future research will be aimed at stabilizing room temperature ferromagnetism in Cu2O by varying the Fe concentration. The band gap variation with Fe doping of Cu2O may be useful for magneto-optical applications if stabilization of ferromagnetism is attained.