Different amounts of Pomegranate (Punica granatum) peel water extract were added as antioxidant and stabilizer for iron oxide (magnetite) nanoparticles during their synthesis by co-precipitation method. The resultant particles were characterized by Fourier Transform Infra-Red (FTIR) spectroscopy to determine their structure. The magnetic properties of these particles were determined by vibrating sample magnetometers (VSM). Their particles size and crystallinity were measured by Transmission Electron Microscope (TEM) and X-ray Diffraction (XRD), respectively. FTIR results confirm that the formed iron oxide particles are reacted through the oxygen bond of CO group of the pomegranate peel water extract. The results of other measurements show that the produced particles had super paramagnetic properties and their sizes were in the range 3-19 nm. A sample of the prepared particles was tested for removal of methylene blue and red violet dyes from water at two different pH values.