Anatase titanium dioxide hydrosol was prepared at low temperature by a simple method. The title material was characterized by TEM, XRD, FTIR and BET, respectively. The photocatalytic activity of the as-prepared TiO2 was evaluated by the degradation of methyl orange solution under sunlight and the photocatalytic oxidation of acetone in air. The results showed that the titanium dioxide hydrosol was composed of anatase phase with average grain size of about 7 nm, and the crystallinity became more perfect with the increase of temperature. The BET surface areas were more than 220 m2·g-1 for these samples. It is found that the photocatalytic activity was much better for the higher heat processing temperature. Especially, the photocatalytic activity of the sample with a heat treatment of 110 ℃ was better than that of P25. In addition, TiO2 hydrosol also possessed good photocatalytic activity under the sunlight illumination.