A new magnetic iron oxide nanopowder (MNM) was prepared, characterized and tested as adsorbent for the removal of phenol and p-chlorophenol (PCP) from aqueous solution. The iron oxide was obtained by a new combustion method which allows the direct obtaining of magnetic nanopowder covered with some organic residues resulting from fuel combustion. The magnetic powder was characterized in terms of phase composition, structure, texture, magnetic properties and carbon content. The adsorption kinetics was examined by the pseudo-first-order and pseudo-second-order models and the equilibrium data were fitted with Langmuir and Freundlich isotherms. The results confirmed the good adsorption capacity of the new magnetic nanopowder for the removal of phenol and PCP from aqueous solutions and its great potential for practical applications.