The wide range of practical uses for nanometer-size metal particles has motivated many lab-scale aerosol synthesis processes. It is well known that the aggregation dynamics of aerosol particles impose a trade-off between particle size and concentration: methods that achieve sub-10 nm particles without aggregation are generally limited by low concentration and low flow rates of order 100 cm3/min. Thus, the intensification of aerosol nanoparticle synthesis and its development for industrial use remains a unique and important manufacturing challenge. We present a microplasma reactor system that has been developed to improve process intensification and reliability. The system utilizes an atmospheric pressure DC microplasma to synthesize iron-carbon particles from a ferrocene vapor precursor. The microplasma incorporates a novel focusing technique using a spatial gradient in gas composition to stabilize short-term fluctuations in performance, achieving an iron yield of up to 0.93. We identify the build-up of deposits between the plasma electrodes as the primary cause of reduced performance over time, and eliminate this build-up by indirectly supplying ferrocene to avoid dissociation in this region of the reactor. Further, we show that the design and conditions downstream of the microplasma have a similar influence on the final particle size distribution as those of the microplasma itself. By tuning the coupled process variables of both the microplasma and this downstream region, we synthesize aerosols with mean diameter from 2 to 7 nm and number concentration of 2 to 8×109 #/cm3 at the system outlet.