The present work highlights the facile synthesis of hydrophobic palm fatty acid functionalized Fe3O4 nanoparticles (MNP-FA) for the efficient removal of oils from the surface of water. An intense hydrophobic layer was introduced on the surface of Fe3O4 nanoparticles functionalized by the palm fatty acid obtained from the hydrolysis of palm olein. Scanning electron microscopy (SEM), vibrating sample magnetometer (VSM), Energy dispersive X-ray spectroscopy (EDX) and water contact angle analysis (WCA) measurements were used to characterize the newly fabricated palm fatty acid adorned magnetic Fe3O4 nanoparticles (MNP-FA). The obtained results confirmed the successful synthesis of palm fatty acid-functionalized magnetic nanoparticles. Oil removal tests performed with MNP-FA revealed that this newly prepared material could selectively adsorb lubricating oil up to 3.5 times of the particles' weight while completely repelling water. The main parameters affecting the adsorption of oil i.e., sorption time, mass of sorbent and pH of water were optimized.