Ultrafine magnetite particles of average diameter 4-7 nm were prepared by precipitation in a poly(vinylalcohol) (PVA) aqueous solution, Crystallinity of the particles decreased with increasing PVA concentration, while the morphology and particle sizes remained almost unchanged, The dispersion of the magnetite particles prepared at 1 wt% PVA was particularly stable. The saturation magnetization of the particles was above 50 emu/g, in spite of their small size and low crystallinity compared with conventionally prepared fine magnetite particles,