Iron oxide nanoparticles are extensively utilized in various fields, particularly in biomedical applications. For such uses, nanoparticles must meet specific criteria, including precise size, morphology, physico-chemical properties, stability, and biocompatibility. Microwave-assisted co-precipitation offers an efficient method for producing water-soluble nanoparticles. Functionalization with citrate during synthesis is crucial for achieving a stable colloidal solution. This study aims to compare the effectiveness of conventional co-precipitation with microwave-assisted co-precipitation. The synthesized nanoparticles were characterized using TEM, DLS, FTIR, XRD, and magnetic measurements. The findings indicate that the in situ citrate functionalization during synthesis results in stable, non-aggregated nanoparticles.