SnO2 nanofibers with various grain sizes ranging from 18.5 to 31.6 nm in diameter were fabricated by electrospinning a polymeric solution and subsequent controlled calcination of the as-spun fibers. The calcined fibers were polycrystalline and composed of densely packed nano-sized SnO2 grains. The effect of the nanograin size on the optical bandgap of SnO2 nanofibers was examined by ultraviolet-visible spectroscopy. The bandgap showed a strong dependence on the nanograin size. The bandgap decreased with increasing nanograin size. Some calculations were performed to understand the relationship between the experimentally obtained bandgaps of the SnO2 nanofibers and the theoretical ones. Quantum confinement and lattice strain of the SnO2 nanofibers are likely responsible for the bandgap shift. This suggests that optimization of the nanograin size is essential not only for achieving the required optical properties of oxide nanofibers, but also to secure superior working properties of electronic devices that are fabricated with electrospinning-synthesized oxide nanofibers.