The effects of phosphatidylcholine (PC) on the growth of magnetite superparamagnetic particles have been investigated. These coated particles give stable suspension in solvents like chloroform and were used for magnetoliposome preparation. The superparamagnetic particles and magnetoliposomes were characterized by X-ray diffraction (XRD), FTIR, Transmission electron microscopy (TEM) and SQUID measurements. The result shows that PC acts as capping agent to restrict the growth of the particles. © 2005 Elsevier B.V. All rights resrved.