One-dimensional magnetic nanostructures have recently attracted much attention because of their intriguing properties that are not realized by their bulk or particle form. These nanostructures are potentially useful for the application to ultrahigh-density data storages, sensors and bulletproof vest. The magnetic particles in magnetic nanofibers of blend types cannot fully align along the external magnetic field because magnetic particles are arrested in solid polymer matrix. To improve the mobility of magnetic particles, we used magneto-rheological fluid (MRF), which has the good mobility and dispersibility. Superparamagnetic core/sheath composite nanofibers were obtained with MRF and poly (ethylene terephthalate) (PET) solution via a coaxial electrospinning technique. Coaxial electrospinning is suited for fabricating core/sheath nanofibers encapsulating MRF materials within a polymer sheath. The magnetic nanoparticles in MRF were dispersed within core part of the nanofibers. The core/sheath magnetic composite nanofibers exhibited superparamagnetic behavior at room temperature and the magnetic nanoparticles in MRF well responded to an applied magnetic field. Also, the mechanical properties of the nanofiber were improved in the magnetic field. This study aimed to fabricate core/sheath magnetic composite nanofibers using coaxial electrospinning and characterize the magnetic as well as mechanical properties of composite nanofibers. (C) 2011 Published by Elsevier B.V.