This study aimed to synthesize dispersed and reactive nanoscale zero-valent iron (nZVI) with poly(1-vinylpyrrolidone-co-vinyl acetate) (PVP/VA), nontoxic and biodegradable stabilizer. The nZVI used for the experiments was prepared by reduction of ferric solution in the presence of PVP/VA with specific weight ratios to iron contents. Colloidal stability was investigated based on the rate of sedimentation, hydrodynamic radius and zeta potential measurement. The characteristic time, which demonstrated dispersivity of particles resisting aggregation, increased from 21.2 min (bare nZVI) to 97.8 min with increasing amount of PVP/VA (the ratios of 2). For the most stable nZVI coated by PVP/VA, its reactivity was examined by nitrate reduction in a closed batch system. The pseudo-first-order kinetic rate constants for the nitrate reduction by the nanoparticles with PVP/VA ratios of 0 and 2 were 0.1633 and $0.1395min^{-1}$ respectively. A nitrogen mass balance, established by quantitative analysis of aqueous nitrogen species, showed that the addition of PVP/VA to nZVI can change the reduction capacity of the nanoparticles.