One step solvothermal route has been developed to prepare a well dispersed magnetically separable palladium-graphene nanocomposite, which can act as a unique catalyst against hydrogenation due to the uniform decoration of palladium nanoparticles throughout the surface of the magnetite-graphene nanocomposite and hence can be reused for several times. In addition to catalytic activity, palladium nanoparticles also facilitate the formation and homogeneous distribution of magnetite (Fe3O4) nanoparticles onto the graphene surfaces or else an agglomerated product has been obtained after the solvothermal reduction of graphene oxide in presence of Fe3+ alone. (C) 2011 Elsevier B.V. All rights reserved.