In this work, bio-oil (an organic matrix rich in oxygen functionalities) was used to efficiently dissolve and disperse Fe 3+ which upon thermal treatment produced a carbon containing dispersed and encapsulated Fe oxide magnetic nanoparticles. These materials were prepared by dissolution of 8, 16 and 24 wt.% Fe 3+ salt in bio-oil followed by treatment at 400, 450, 500 or 600 °C in N 2 atmosphere. X-ray diffraction (XRD), scanning (SEM) and transmission electron microscopies (TEM), elemental analysis, thermogravimetric-mass spectrometry (TG-MS), potentiometric titration, Raman and Mössbauer spectroscopies showed that Fe 3+ species in bio-oil is reduced to produce magnetic nanoparticles phases: magnetite Fe 3 O 4 and maghemite γ-Fe 2 O 3. At low temperatures, the iron phases were less protected, and the carbon matrix was more reactive, while in temperatures above 500 °C, the iron phases were more stable, however, the carbon matrix was less reactive. Reaction of these magnetic carbon materials with concentrated H 2 SO 4 produced surface sulfonic acidic sites (ca. 1 mmol g −1), especially for the materials obtained at 400 and 450 °C. The materials were used as catalysts on esterification reaction of oleic acid with methanol at 100 °C and conversions of 90% were reached, however, after 2 consecutive uses, the conversion decreased to 30%, being required more studies to improve the material stability.