This study delves into the integration of iron (III) oxide (Fe2O3) nanorods into orientated polyacrylonitrile (PAN) nanofiber mats, a topic of considerable interest in applications such as water treatment and environmental remediation. Focussing on the modification of PAN nanofibers, the research investigates the impact of varying concentrations (1%, 3% and 5%) of Fe2O3 nanorods on the mechanical and thermal properties of the nanofiber mats. Mechanical strength was evaluated by tensile testing, while thermal stability was evaluated by thermogravimetric analysis (TGA). The results indicate a notable improvement in the mechanical strength of the nanofiber mats, with an increase of up to 24% observed at the highest nanorod concentration of 5%. However, the thermal stability of the mats showed a decrease of approximately 12% as per the TGA results. This research provides new insights into the effect of Fe2O3 nanorod reinforcement on PAN nanofibers, highlighting the trade-offs between mechanical enhancement and thermal stability.