Herein we report the fabrication and characterization magnetically recyclable catalysts of NiFe2O4-Pd nanocomposite as highly effective catalysts for reduction reactions in liquid phase. The reduction Pd2+ was accomplished with polyethylene glycol 400 (PEG-400) instead of sodium borohydride (NaBH4) and NiFe2O4 nanoparticles was prepared by sonochemically using FeCI3 center dot 6H(2)O and NiCl2. The chemical characterization of the product was done with X-ray diffractometry, Infrared spectroscopy, transmission electron microscopy, UV-Vis spectroscopy, thermal gravimetry and inductively coupled plasma. Thus formed NiFe2O4-Pd MRCs showed a very high activity in reduction reactions of 4-nitro aniline and 1,3-dinitrobenzene in liquid phase. It was found out that the catalytic activity of NiFe2O4-Pd MRCs on the reduction of 4-nitro aniline and 1,3-dinitrobenzene in liquid phase are between 99-93% and 98-93%, respectively. Magnetic character of this system allowed recovery and multiple use without significant loss of its catalytic activity. It is found that NiFe2O4-Pd MRCs showed very efficient catalytic activity and multiple usability. (C) 2012 Elsevier Ltd. All rights reserved.