Pure and doped magnesium oxide nanoparticles were successfully synthesized employing a sol-gel process. The synthesized nanoparticles were characterized by thermal differential analysis, X-ray powder diffraction, transmission electron microscopy, scanning electron microscope, energy-dispersive X-ray spectroscopy, and vibrating sample magnetometer. X-ray diffraction patterns confirmed the crystallization of MgO structure and correspondingly ratified that the transition metal atoms were incorporated into the MgO host lattice. The crystallite size decreases as the concentration of dopants were augmented. TEM images showed that the particles of pristine magnesium oxide were embedded in the sheet matrix of the graphene-like layer with a size of 22.06 nm. The EDS spectra revealed the presence of carbon in pure MgO nanoparticles, while nickel and chromium were distributed in the host lattice. Based on VSM measurements, room temperature ferromagnetism in pristine MgO-NPs could be ascribed to the presence of either Mg vacancy or carbon atoms. Furthermore, paramagnetic ordering had been observed upon doping. Overall, the prepared MgO-NPs may be found as a potential application in spintronics devices.