This work reports on additive-free Ag nanoparticles (4-6 nm) deposition on magnetic alpha-Fe2O3 nanocrystals surface by the slow reduction of AgNO3 with NaBH4 in aqueous medium. The EDS analysis revealed that the new materials contain 3.93 wt% of Ag nanoparticle on the surface of alpha-Fe2O3 which are the active suite for hydrogenation reaction. The Ag/Fe2O3 nanocatalysts exhibited good catalytic ability toward chemoselective hydrogenation of nitroarenes in water. LC-MS study suggested that the catalytic reaction pathway is -NO2, -NHOH, -NH2 and certainly skips the nitrosoarene intermediate step. The nanocatalysts are very efficient in the hydrogenation of nitroarenes tolerating -H, -Br, -I, -OH, -OCH3, -COOH and -CONH2 functional groups. The nanocatalysts were separated by external magnet and recycled in aqueous medium which offer environmentally and safe approach to this hydrogenation reaction. The catalyst was tested up to 10 recycles and showed no significant loss of catalytic activity. (C) 2017 Elsevier B.V. All rights reserved.