Superparamagnetic iron oxide nanoparticles (SPIO) having high magnetization (83 emu/g) and crystallinity were synthesized by using a sonochemical method. Ferrofluids from these nanoparticles coated with oleic acid as a surfactant were prepared for magnetic resonance imaging (MRI) contrast agent. The coated SPIO could be easily dispersed in chitosan, and the hydrodynamic diameter of the coated SPIO in the chitosan solution was estimated to be 65 nm. The ferrofluids of various concentrations did not agglomerate for 30 days, indicating their good stability. The T1- and T2-weighted MR images of these ferrofluids were obtained and the MRI image contrasts were similar to those of Resovist (R). (c) 2004 Elsevier B.V. All rights reserved.