Nickel oxide doped Fe2O3 thin films have been prepared by spray pyrolysis technique on glass substrate temperature 400 ºC. The initial solution was including a 0.1 M/L for both NiCl2 and FeCl3 diluted with redistilled water and a few drops of HCl. The effect of NiO-doping on Urbach energy and dispersion parameters was studied. UV-Visible spectrophotometer in the range of (300-900) nm used to determine absorption spectra. The Urbach energy decreased with increasing NiO content that inversely proportion to the energy gap, which increased from 2.53 eV before doping to 2.88 eV after 3% NiO-doping, also the same behavior of absorbance and the optical conductivity.While the real and imaginary dielectric constants and dispersion parameters such as Ed, Eïµ, M-1, and M-3 are decreased with increasing NiO content in Fe2O3 thin films.