When iron oxide magnetic nanoparticles were synthesized by co-precipitation method using aqueous ammonia as reducing agent, the synthesized particles were aggregated and thus precipitation occurred. Using Magnolia kobus leaf extract as reducing agent, spherical nanoparticles of 50~200 nm were synthesized with low yield. By using both Magnolia kobus leaf extract and aqueous ammonia as reducing and stabilizing agents, smaller nanoparticles of 40~120 nm could be synthesized with various shapes. The synthesized magnetic nanoparticles were characterized with field emission transmission electron microscopy (FE-TEM) and scanning electron microscopy (SEM). TEM and SEM images showed that the magnetic nanoparticles are a mixture of triangles, tetragons, rods and spherical structures.