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Self-assembled epitaxial La0.7Sr0.3MnO3:NiO (LSMO:NiO) nanocomposite thin films were grown on (001)-oriented SrTiO3 substrates by pulsed laser deposition, and their microstructures and magnetoresistance (MR) properties were investigated. The room temperature MR effect at a low magnetic field has been realized in the composite films, and the maximum MR value is 18.7% at 300 K and 1 T. The room temperature MR properties at the low magnetic field can be attributed to the special structure, which is made up of the nano-sized LSMO and NiO columns. The room temperature MR properties at low magnetic fields will facilitate its extensive room temperature applications.