The present investigation is aimed at formulating a stable foam for fracturing of unconventional reservoirs through selective application of various combinations of nanoparticles and surfactants. Ferric oxide nanoparticles are proposed for the first time to enhance the thermal stability of the foam fluid for hydraulic fracturing. Addition of ferric oxide nanoparticles up to a concentration of 0.5 wt as a foam stabilizer to the mixture of surfactants (SDBS and CAPB) improved the foam rheology and enhanced thermal stability to 52 at 80 °C. A morphological study of foam bubbles through confocal laser scanning and microscopic analyses validated the experimental results in improved stability and reduction in film drainage time through adsorption of nanoparticles on the bubble interfaces. In addition, nanostabilized foam bubbles showed enhanced viscosity and a satisfactory proppant settling velocity. Consequently, these above favorable outcomes help in improving proppant suspension capacity and efficient proppant transport through foam fluid for the fracturing job of unconventional reservoirs. © 2019 American Chemical Society.