Core@shell Fe@FexOy nanoparticles (NPs) have attracted a great deal of interest as potential magnetic supports for catalytic metals via galvanic exchange reactions. In this study Fe@FexOy/Pd bimetallic NPs were synthesized through galvanic exchange reactions using 50:1, 20:1 and 5:1 molar ratios of Fe@FexOy NPs to Pd(NO3)(2). The resulting Fe@FexOy/Pd NPs have Pd NPs on the Fe oxide surfaces, and still retain their response to external magnetic fields. The materials could be recovered after the reaction by an external magnetic field, and agitation of the solution via a magnetic field led to improvements of mass transfer of the substrates to the catalyst surface for hydrogenation reactions. The Fe@FexOy/Pd NPs derived from the 5:1 molar ratio of their respective salts (Fe:Pd) exhibited a higher catalytic activity than particles synthesized from 20:1 and 50:1 molar ratios for the hydrogenation of 2-methyl-3-buten-2-ol. The highest turnover frequency reached 3600 h(-1) using ethanol as a solvent. In situ XANES spectra show that the Fe@FexOy NPs in the Fe@FexOy/Pd system are easily oxidized when dispersed in water, while they are very stable if ethanol is used as a solvent. This oxidative stability has important implications for the sustainable use of such particles in real world applications. (C) 2017 Elsevier B.V. All rights reserved.