A simple route based on time-dependent growth was employed to synthesize solid and hollow spheres of Pd/Fe(3)O(4) nanocomposite. Transmission electron microscopic (TEM) imaging shows that the spheres are composed of nanocrystals with the solid spheres having a diameter of 533 nm whereas the hollow ones having a diameter of 520 nm and a shell thickness of 100 nm. An assembly-then-growth mechanism for the formation of the magnetic Pd/Fe(3)O(4) nanocomposite has also been elucidated on the basis of the experimental observations. It is demonstrated that the Pd/Fe(3)O(4) nanocomposite functions as a heterogeneous catalyst for the hydrogenation reaction of p-nitrophenol at room temperature under atmospheric pressure. Both the solid and hollow spheres possess unique magnetic properties so that they may be conveniently separated and recovered by a magnet after the catalytic reaction.