In our approach for magnetic iron oxide nanoparticles surface modification, the fabrication of an inorganic shell, consisting of silica by the deposition of preformed colloids onto the nanoparticle surface and functionalization of these particles, was realized. The magnetic nanoparticles, non-coated and coated with silica layer by Stober method, are functionalized with chlorosulfonic acid. The magnetic nanoparticles (MNPs), in size of 10-13 nm, could be used as acid catalyst in biodiesel production and show superparamagnetic character. The prepared nanoparticles were characterized by different methods including XRD, EDX, FT-IR and VSM. The catalytic activity of the coated and non-coated solid acids was examined in palmitic acid-methanol esterification as an industrial reaction for biodiesel synthesis. Although thin silica layer results in only a minor obstacle with respect to magnetism, it can accelerate the mass transportation due to its relatively porous structure and magnetic core may be more stable in the acidic reaction medium by means of covering process. Accordingly, coating strategy can be efficient way for allowing applications of MNPs in acid catalyzed esterification.