Magnetic-graphene nanosheets have been synthesized via a simple effective chemical precipitation method followed by heat treatment. The composite nanosheets are super paramagnetic at room temperature and can be separated by an external magnetic field. The prepared magnetic-graphene nanosheets were characterized by X-ray diffraction (XRD), scanning electron microscopy (SEM), transmission electron microscopy (TEM), Raman spectroscopy, and BET surface area analysis. The results demonstrated the successful attachment of iron oxide nanoparticles to graphene nanosheets. It was found that the attached nanoparticles were mainly $Fe_3O_4$. The magnetic-graphene nanosheets showed near complete methyl orange removal within 10 mintues and would be practically usable for methyl orange separation from water.