Herein, versatile, and reproducible method to prepare Pd/Fe3O4 via hydrothermal synthesis. The vital role of this catalyst is in its potential use in CO oxidation catalysis. The Pd/Fe3O4 shows a distinctive activity. TEM images confirmed that Pd nanoparticles of 8-12 nm have a well dispersion on the surface of magnetite (Fe3O4). Moreover, the prepared catalyst is recycled with remarkable catalytic activity. This outstanding activity is mainly a direct result of the strong metal-support interaction. The defect sites in the reduced iron oxide act as nucleation centers that enable anchoring of Pd nanoparticles leading to prevention of agglomeration.