Mullite-nickel nanocomposite fibers with Ni nanoparticles of controllable size, dispersion, and consequent magnetic properties were fabricated using sol-gel/electrospinning method, followed by thermal reduction. The fibers were electrospun from an aqueous solution containing sol-gel mullite precursor and nickel nitrate. These fibers were then heat treated in the reducing atmosphere between 550°C and 750°C to achieve fine-dis persed metallic Ni nanoparticles (NPs). After the Ni 2+ was reduced to Ni NPs at 750°C for 10 h, the fibers were then directly transformed to the mullite fibers at 1000°C without the undesirable intermediate spinel phase. In many high-temperature applications, mullite is the desired phase than spinel. If not fully reduced, the Ni 2+ cations induce early precipitation of spinel phase before mullite can be formed. This spinel phase was a solid solution between Al 2 NiO 4 and Al-Si spinels, which later reacted with the residual silica and formed a mixture of mullite and spinel at 1400°C. The formation of spinel phase was suppressed or fully eliminated with chemically reducing Ni 2+ to metal NPs. The average size of nickel NPs within the fibers was~20 nm, insensitive of the Ni concentration and reducing temperature. However, the Ni NPs on the fiber surface grew as large as~80 nm due to fast surface diffusion. The magnetic nanocomposites exhibited ferromagnetism with saturation magnetization (M s ) close to pure nickel of the same nominal weight, but coercivity (H c ) much smaller than the bulk nickel, indicating the nature of bimodal magnetic nanoparticle distributions. The majority of small Ni NPs (~20 nm) within the fibers exhibited superparamagnetism, while the minor portion of relatively large NPs (50-80 nm) showed ferromagnetism.