The effects of reaction temperature and precursor concentration on the microstructure and magnetic properties of nanoparticles synthesized as final products of iron acetylacetonate in chemical vapor condensation (CVC) were investigated. Pure phase was obtained at temperature above and crystallite size of nanoparticles decreased with lowering precursor concentration. Also, the coercivity decreases with decreasing crystallite size of nanopowder. The lowest coercivity was 7.8 Oe, which was obtained from the nanopowder sample synthesized at precursor concentration of 0.3M. Then, the crystallite size of nanoparticles was 8.8 nm.