Objectives The yeast cells were coated with Fe3O4 magnetic nanoparticles and employed as biocatalyst for the microbial biotransformation of benzaldehyde into l-phenylacetylcarbinol (l-PAC). Results Saccharomyces cerevisiae CEN.PK113-7D yeast cells were coated with magnetic nanoparticles to facilitate the cells separation process. Transmission electron microscopy, powder XRD diffraction, and vibrating sample magnetometer were used to characterize magnetic nanoparticles and magnetic nanoparticle-coated yeast cells. Then the reusability of magnetically recoverable cells in production of l-PAC was investigated. Results show that coating yeast cells with magnetic nanoparticles does not affect their size and structure. Coated cells were also used in seven consecutive batch cycles and no significant reduction for l-PAC titer was observed in any of the cycles. Conclusion Coating yeast cells with magnetic nanoparticles enabled rapid separation and reuse of cells in several successive batch cycle without affecting their ability to produce l-PAC.