Highly activated, monodispersed N,N‐dimethylformamide (DMF)‐stabilized iron‐oxide nanoparticles (Fe2O3 NPs) were synthesized by using iron(III) acetylacetonate as a precursor under open‐air conditions. The resulting Fe2O3 NPs were characterized by various techniques (e.g., transmission electron microscopy, dynamic light scattering, X‐ray diffraction, X‐ray photoelectron spectroscopy, FTIR spectroscopy, and X‐ray adsorption near‐edge structure). The Fe2O3 NPs exhibited efficient catalytic activity for the hydrosilylation of alkenes without the need for further additives. An effective recycling process of the colloidal catalyst by extraction with a hexane/DMF system was developed, and recycling of the catalyst over five cycles did not result in any significant loss in catalytic activity.