The initial thermal decomposition of iron carbonyl (Fe(CO)(5)), followed by reduction of palladium acetylacetonate (Pd(acac)(2)) produced FePd nanoparticles (NPs) with an Fe(x)O(y)-rich core and a Pd-rich shell. The as-synthesized NPs were subsequently treated with (S)-2,2'-bis(diphenylphosphino)-1,1'-binaphthene ((S)-BINAP) as a chiral modifier, which provides them with the optical activity to show a negative Cotton effect in the circular dichroism (CD) spectrum. Characterization by means of X-ray diffraction (XRD), transmission electron microscopy (TEM), superconducting quantum interface device (SQUID) and X-ray absorption fine structure (XAFS) measurements was performed. The FePd NPs modified with (S)-BINAP had a mean diameter of ca. 5.6 nm, and exhibited superparamagnetic behavior at 300 K with zero remanence and coercivity. The FePd-(S)-BINAP was shown to catalyze the asymmetric Suzuki-Miyaura coupling reaction with easy recovery from the reaction mixture by applying an external magnet. The designed architecture enabled the powerful combination of two functionalities, magnetism that responds to a magnetic field for easy recycling, as well as an optically active catalytic center that promotes the asymmetric coupling reaction.