AbstractIt is widely reported during last decade on the observation of room temperature ferromagnetism (RTFM) in doped ZnO and other transition metal oxides. However, the origin of RTFM is not understood and highly debated. While investigating the origin of RTFM, magnetic ion doped oxides should be excluded because it is not yet settled whether RTFM is intrinsic or due to the magnetic ion cluster in ZnO. Hence, it is desirable to investigate the origin of RTFM in non-magnetic ion doped ZnO and Cu-doped ZnO will be most suitable for this purpose. The important features of ferromagnetism observed in doped ZnO are (i) observation of RTFM at a doping concentration much below than the percolation threshold of wurtzite ZnO, (ii) temperature independence of magnetization and (iii) almost anhysteretic magnetization curve. We show that all these features of ferromagnetism in ZnO are due to overlapping of bound magnetic polarons (BMPs) which are created by exchange interaction between the spin of Cu²⁺ ion and spin of the localized hole due to zinc vacancy $({V}_{Zn})$ ( V Z n ) . Both the experimental and theoretical investigation show that the exchange interaction between Cu²⁺-Cu²⁺ ions mediated by ${V}_{Zn}$ V Z n is responsible for RTFM in Cu-doped ZnO.