In this work, iron oxide nanoparticles (~5 nm) embedded in a chitosan polymer film, were synthesized. In order to obtain this nanostructured material, firstly a homogenous film of Fe(II)-chitosan was prepared. The resulting composite film has a thickness of ~140μm. Iron oxide nanoparticles were in-situ synthesized by treating the composite film with H2O2 under alkaline conditions. The morphological analysis by Transmission Electron Microscopy (TEM) shows the nanoparticles were embedded and stabilized in chitosan polymer film. The magnetic behavior was studied by magnetization measurements. The magnetization curves at room temperature showed that iron oxide nanoparticles have a superparamagnetic behavior.