The synthesis of magnetic nano sized Fe particle-encapsulated single-walled carbon nanotubes (SWNTs) has been realized for the first time by a two-step method. In this method, ferrocene is selected as a starting material and used in filling SWNTs. Then, the as-synthesized ferrocene-filled SWNTs are decomposed to release Fe atoms inside the SWNTs. Both ferrocenefilled SWNT and Fe-filled SWNT samples are characterized by transmission electron microscopy (TEM), energy-dispersive X-ray spectrometry (EDX) and Raman spectroscopy. Our results reveal that discrete or chain like Fe particles have successfully been filled in the SWNTs.