We report the magnetic and magnetotransport properties of (In 0.985Nd0.015)2O2.89 thin films grown by pulse laser deposition. The clear magnetization hysteresis loops with the complementary magnetic domain structure reveal the intrinsic room temperature ferromagnetism in the as-prepared films. The strong sp-f exchange interaction as a result of the rare earth doping is discussed as the origin of the magnetotransport behaviours. A positive magnetoresistance (∼29.2%) was observed at 5 K and ascribed to the strong ferromagnetic sp-f exchange interaction in (In0.985Nd0.015)2O 2.89 thin films due to a large Zeeman splitting in an external magnetic field of 50 KOe. © 2014 AIP Publishing LLC.