Magnetic iron oxides nanoparticles were synthesized at room temperature using water in oil microemulsion process. This microemulsion system was prepared using HTAB (surfactant), noctane (oil), 1-butanol (cosurfactant) and aqueous salt solution of Fe2+ and OH-. The microemulsions were used as microreactors for controlling the growth of the particles. The nanoparticles were characterized using TGA, XRD, TEM, BET, DLS and AGM. X-ray diffraction analysis revealed that the magnetic nanoparticles could be directly formed at room temperature. It also showed that the particles were either maghemite (γ-Fe2O3) or magnetite (Fe3O4). TGA thermogram showed two significant weight losses at around 100°C and 250° C, which were caused by dehydration and burn off of the surfactant. The surface area of the magnetic particles measured using gas absorption and desorption technique was 105.43m2/g, which indicated the presence of particles of 21nm in length. The size measured by TEM and DLS was 105nm and 107.9nm respectively due to the formation of large aggregated clusters. The sample also showed strong magnetic properties with the value of Ms of 11.2 emu/g.