Nanoparticles of surfactant modified MgFe2O4 have been synthesized by reverse micelle processing using tertiary system of heptane/Igepal CO 520/H2O. The effect of water to surfactant ratio on the particle size and magnetic property has been studied. X-ray diffraction analysis confirms that MgFe2O4 nanoparticles are crystalline in nature with cubic spinel structure. The average particle size increases with increase in water to surfactant ratio. The Fourier transform infrared (FTIR) analysis confirms that the surface of MgFe2O4 nanoparticles was coated with surfactants. The saturation magnetization ranged from 14.4 to 40.05 emu/g was measured by Superconducting Quantum Interference Device Magnetometry (SQUID). (C) 2011 Elsevier B. V. All rights reserved.