Fe~(3+)doped TiO_2 thin film was prepared by solgel method; the correlation between optical properties, crystal structure and photocatalysis of TiO_2 doped with different Fe~(3+) concentration was studied. The principle was also discussed. The results show that variant Fe~(3+) concentration changes optical property, cell parameter and photocatalysis of TiO_2, and the thin films with 0.3%~0.4%Fe have the best photocatalysis, and the films have anatase structure with optical absorption edge of 366 nm, which have red shift of 6 nm compared with pure TiO_2.