Nanostructured materials have recently received a growing amount of attention due to their unique properties and wide range of vital applications. In this study, Fe3O4 nanoparticles were coated with different loadings of poly (aniline co-anthranilic acid “PANAA”) copolymer by using surface initiated polymerization (SIP) method. The prepared nanocomposites were characterized by various techniques including FT-IR, TGA, SEM/EDX and XRD. FT-IR data showed that carboxylic groups of PANAA physically interact with magnetite nanoparticles. Thermal stability of PANAA was remarkably improved in the presence of magnetite nanoparticles in the range of 300–800°C. The XRD and SEM analyses indicated that these particles were in the 19–30nm range. The coercivity (Hc) values revealed that the samples are soft magnetic. More in-depth nanostructure were revealed by transmission electron microscopy (TEM). The application of PANAA/magnetite nanocomposites in removing dyes from aqueous solutions were studied.