Magnetic Ag-Co and Ag-Ni alloy nanoparticles were prepared through a chemical reduction method using their corresponding [Co(NH 3) 6 ]Cl 3 and [Ni(C 2 O 4) 2 ]K 2 complexes, and AgNO 3. In this reaction, hydrazine monohydrate was used as reducing agent. The obtained nanoparticles were characterized by Fourier transform infrared spectroscopy (FT-IR), scanning electron microscopy (SEM), energy dispersive spectroscopy (EDS), X-ray diffraction (XRD), and vibrating sample magnetometer (VSM). Ag-Co and Ag-Ni nanoalloys exhibited excellent catalytic performance in the preparation of 1,8-dioxooctahydroxanthenes from the reaction of 5,5-dimethyl-1,3-cycloheanedione (dimedone) with aromatic aldehydes. Catalysts were separated by an external permanent magnet and reused. Both, Ag-Co and Ag-Ni nanoalloys posess antibacterial and antioxidant properties and have no significant effect on DNA cleavage.