Preparation of magnetic nanoparticles with controlled size and shape along with modulation of their surface properties via introduction of functional groups holds great prospect in the field of nanotechnology. Superparamagnetic, aqueous dispersible iron oxide nanoparticles (Fe₃O₃) with amine-functionalized surface were prepared through solvothermal method, using poly(ethylene imine) (PEI), ethanolamine (EA), and 2,2' -(ethylenedioxy) bis (ethylamine) (EDBE) as amine precursors. These aminated nanoparticles were used as support for the immobilization of lipase, an important industrial enzyme. Lipase was immobilized via glutaraldehyde coupling agent. These functionalized nanoparticles were characterized by XRD, FTIR, TEM, FESEM and VSM analysis. The maximum activity was obtained for the lipase immobilized on EDBE modified Fe3O4 nanoparticles. The lipase immobilized on EDBE-Fe₃O₃ depicted 83.9% relative activity with respect to the same amount of free lipase. Moreover, lipase immobilized on EDBE-Fe₃O₃ nanoparticles demonstrated good thermal and storage stability, and easy reusability. The kinetic parameters of lipase immobilized on EDBE-Fe₃O₃ were compared with those of free lipase and the apparent Michaelis-Menten constant ofimmobilized lipase was found to be nearly same as that of free lipase.