Magnetic nanoparticles were prepared by thermal decomposition and adsorbed with lecithin by applying ultrasonication. The size and saturation magnetization changes of magnetic nanoparticles were observed with different lecithin concentration, and the maximum tolerated dose (MTD) and toxicity of magnetic fluid was investigated through a biological test. As the added lecithin concentration increased in a weight loss test by heating of magnetic particles, the thickness of lecithin-adsorption layer increased non-linearly, and the proper adsorption amount was observed in the lecithin concentration of 20% (w/v). The dispersibility and magnetic property of lecithin-adsorbed magnetic nanoparticles was the most excellent when the ultrasonic holding time was 1.5 h. Also, the maximum tolerated concentration with best cell viability was 32 mu g/ml by in vitro test, and lecithin-adsorbed magnetic fluids showed the improved biocompatibility by 1.2 times compared with pure magnetite magnetic fluids. (C) 2007 Elsevier B.V. All rights reserved.