Using nanosecond (ns) and femtosecond (fs) time-resolved absorption spectroscopies (pump-probe technique), the carrier dynamics in transition metal oxide nanocrystals of alpha-Fe2O3 and ZnFe2O4 was studied during the photolysis process. For Fe2O3 and ZnFe2O4 nanocrystals, the fs measurements detect similar profiles of a positive nonlinear absorption in their capped nanocrystals, whereas much weak signals in the naked particles. In the nanosecond measurements Fe2O3 and ZnFe2O4 nanocrystals show obvious excitation-power dependent absorption properties and at the low pump power they show weak photobleaching, but at high pump power they produce positive nonlinear absorptions. For Fe2O3 nanocrystals, the threshold power of negative absorption (bleach) to positive absorption increases with reducing size, whereas for the ZnFe2O4 samples, the threshold powers reach minimum at a critical size of 11 nm, grow for both the bigger and the smaller nanocrystals. These results reflect the influences of their microscopic magnetic couplings and carrier correlation on biexciton absorption in Fe2O3 and ZnFe2O4 nanocrystals. All the results indicate that the time resolved photoabsorption techniques are useful to study the microscopic spin interactions and carrier correlations in transition metal oxide nanocrystals. (C) 2004 American Institute of Physics.