Magnetite nanoparticles were prepared by co-precipitation method and then silica was coated onto the surface of $Fe_3O_4$ by hydrolysis of TEOS. The silica coated magnetite nanoparticles were characterized for its structural, microstructural, optical, vibrational and magnetic properties by X-ray diffraction analysis, Scanning electron microscopy, UV-visible spectroscopy, Infrared spectroscopy and Vibration sample magnetometer, respectively. XRD study confirmed the presence of $SiO_2$ on the surface of magnetite nanoparticles. SEM study indicated that with increase in TEOS content the particles become bigger and mono-disperse. It was also found that the silica coating prevents magnetic particles from aggregation and imparts excellent stability.