Magnetic oxide-coated iron nanoparticles with the mean size ranging from 6 to 75 nm were synthesized by aerosol method using iron carbonyl as a precursor under the flowing inert gas atmosphere. Oxide shells were formed by passivation of asprepared iron particles. The influence of experimental parameters on the nanoparticles' microstructure, phase composition and growth behavior as well as magnetic properties were investigated and discussed in this study.