In this paper, uniform NaGdF4:Yb3+, Er3+ nanorods doped with Fe3+ were synthesized by a facile hydrothermal method. The prepared NaGdF4:Yb3+, Er3+ doped with Fe3+ displayed hexagonal phase structure from XRD pattern and uniform nanorods with narrow size distribution from TEM. The signal of Fe3+ is accompanied with the Yb3+ and Er3+ from EDX line-scanning, which was confirmed that Fe3+ was doped successfully. The NaGdF4:Yb3+, Er3+ nanorods doped with Fe3+ show absorption of near-infrared region from UV–Vis absorption spectra. The upconversion luminescence intensity enhances with increasing content of Fe3+ under 980 nm excitation. When stoichiometric ratio of Fe3+ is 20 mol%, the strongest upconversion emission intensity could be obtained. But the upconversion luminescence would become weak when the stoichiometric ratio of Fe3+ is above 20 mol%. Based on above analysis, it is inferred that there is energy conversion between Fe3+ and rare earth ions by the luminescence mechanism. In this work, it provides a facile method for preparation of NaGdF4:Yb3+, Er3+ nanorods, which displays improving upconversion luminescence by Fe3+ doping.