We report the magnetic and magnetotransport properties of (In0.985Nd0.015)(2)O-2.89 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 (similar to 29.2%) was observed at 5K and ascribed to the strong ferromagnetic sp-f exchange interaction in (In0.985Nd0.015)(2)O-2.89 thin films due to a large Zeeman splitting in an external magnetic field of 50 KOe. (C) 2014 AIP Publishing LLC.