New magnetic polyurethane nanocomposite foams have been synthesized by the one-shot method. The opened-cell soft foams contain a dispersion of uniformly sized nanocrystalline iron oxide prepared ex situ by the high temperature thermal decomposition of iron acetylacetonate in phenyl ether in the presence of oleic acid. The magnetic particles were dispersed in polyol by sonication prior to the reaction of the latter with isocyanate to produce the magnetic foams. A 7 wt% loading of iron oxide yielded a soft, flexible foam with a room temperature magnetization of 3.5 emu/g at one Tesla. Higher loadings of iron oxide are possible without destruction of the soft open-cell polyurethane structure. Physicochemical characterization of the foams will be presented along with magnetic and mechanical properties. Potential applications include smart materials such as magnetic shape memory foams, adhesive-free metal to foam seals, inductively coupled thermal foams and applications for conformable foams having a magnetic component such as healthcare products.