Advanced Oxidation Processes (AOP) are the emerging techniques for removing organic pollutants from industrial water streams. However, to establish such a method for industrial applications successfully the knowledgebase of complete mechanism is still incomplete. Herein, beta-cyclodextrin coated magnetic Fe3O4 nanocompositewas prepared to enhance the stability and surface activity of Fe3O4. beta-cyclodextrin provides more number of surface active groups on the nanoparticles to increase the catalytic activity and stabilizing the particles by preventing aggregation. The material was tested for the degradation of Eriochrome black T (EBT) by the reactive hydroxyl radicals, produced from the decomposition of H2O2 in an AOP. The catalyst has the particle size in the range of 10 +/- 2 nm and saturation magnetization value of 45 emu/g, effective for easy separation. The studies focus to evaluate the degradation efficiency of the catalyst by considering various parameters viz. pH, H2O2 dose and catalyst amount at room temperature in a heterogeneous Fenton reaction. LCMS studies show the formation of small degraded products like Prop-1-en-1-ol, Glyoxylic acid etc. after reaction. Our observation implies that beta-cyclodextrin coated magnetic nanocomposite has much higher catalytic activity than pure Fe3O4 for degradation of EBT in aqueous medium.