The microwave-hydrothermal method has been investigated for the fast synthesis of rare earth cerium oxide (CeO2) nanoparticles and nanorods. This approach combines the advantages of both hydrothermal and microwave heating techniques. It is facile, rapid, energy-saving, and environmentally-benign and leads to high-yields. The average sizes of the obtained CeO2 nanoparticles could be adjusted from approximatrly 1.6 nm to approximately 20 nm. Moreover, by changing cerium source and adjusting the amount of the added ammonia water, CeO2 nanorods could be synthesized under microwave-assisted conditions for the first time. No calcination process or surfactant is required in our experiments for both CeO2 nanoparticles and nanorods. The ultraviolet and visible (UV-vis) spectra show the obvious size-dependence of the position of the absorbance peak. The Brunaur Emmett Teller (BET) nitrogen adsorption indicates that these nanoparticles and nanorods have high specific surface areas, which are needed for potential applications in many fields. Compared with conventional hydrothermal method, microwave-assisted hydrothermal method shows its advantages of rapidity, convenience and perhaps cost-effectiveness and could be extended to the synthesis of other nanoparticles and nanorods.