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Nanocomposite thin film present interesting magnetic, mechanical, electronic and optical properties due to their size-dependent phenomena. One of the problem of contemporary magnetic applications, such as magnetic recording, is that these require a precise control of the fabrication process, in order to create a homogeneous microstructure with isolated magnetic entities. The sol-gel process is as efficient in preparing magnetic nanoparticles dispersed in different matrices and to produce thin films with accurate control over their morphology and purity. Superparamagnetic iron oxide nanoparticles are proving to be a class of novel probes useful for in vitro and in vivo cellular and molecular imaging. Superparamagnetic iron oxide nanoparticles present unique properties that can be applied in targeted delivery of therapeutic agents, development of immunochromatographic tests, hyperfhermia, and conversion of a pro-drug to its active form. Iron oxide magnetic nanoparticles in size ~ 100 nm were synthesized through the co-precipitation of Fe2+ and Fe3+ aqueous salt solutions by passing Ar gas. Nanocomposite thin films of SiO2/Fe3O4 have been prepared with sol-gel dip coating technique. Prepared films formed crack free surface with good dispersion of high spherical particles iron oxide in silica substrate, Rq values 1.5-2.7 nm. [ABSTRACT FROM AUTHOR]