Substituted ferrites [Mn1-xZnxFe 2O4 (0≤x≤0.8)] of nanoscale dimensions have been prepared by a novel microwave refluxing method. The effect of different parameters [such as pH, reflux time, presence of PEG (MW-3350) molecules] on particle morphology and size has been studied. Characterization of the above capped particles was done by XRD, FTIR, TEM and SQUID magnetometry. The as-prepared particles were further used for magnetoliposome preparation. © 2005 Elsevier B.V. All rights reserved.