Using FeCl3·6H2O  and NaOH as reactants, polyethylene glycol 200 as template agent, rodlikeFe2O3 nano-crystalline was synthesized. The samples were characterized by TEM, XRD and FI-IR.The results of TEM show that morphology of samples were changed with conditions of preparation.The synthetic conditions of nano-rods were optimized. The Fe2O3  nanorods were modified by sodium lauryl sulfate and its effect of oxidative desulfurization of thiophene was studied. Experiments show that modified Fe2O3  nanorods could significantly promote the removal of thiophene in the simulated oil due to effect of coupling existed between modified Fe2O3  catalyst and ultrasonic. The desulphurization rate could reach 100%.