A simple synthesis method of chitosan functionalized Fe3O4-Au (Chit-Fe2O3@Au) nanoparticles (NPs) was developed. This method first prepared oleic acid-coated Fe3O4 (OA-Fe2O3) NPs as a precursor, followed by functionalization of chitosan to obtain Chit-Fe2O3@Au NPs. Structural and magnetic properties of both synthesized nanomaterials were examined by surface and spectroscopic techniques. An X-ray diffraction (XRD) study showed that the phases of Fe3O4 and Au had sizes of 5.9 and 11.2 nm, respectively. High resolution transmission electron microscopy (HRTEM) images demonstrated the formation of nearly spherical shaped composites in Chit-Fe3O4@Au nanostructures. Energy dispersive X-ray (EDX) spectroscopy measurements confirmed the presence of Au and Fe3O4 in the prepared nanomaterials. The capping of chitosan on Au and Fe3O4 surface was established using Fourier transform infrared (FTIR) spectroscopy measurements. Mössbauer spectra at 300 K showed an increase in superparamagnetic components. At 80 K, the Fe3O4@Au nanomaterials preserved 11% of superparamagnetic phase. Magnetization measurements revealed that the Fe3O4@Au nanomaterials had a saturation magnetization of 28 emu/g at 300 K and a blocking temperature of 117 K. The synthesized nanomaterials have potential in biomedical applications because of their high magnetic property with suitable binding sites for delivering drugs.