Magnetic nanoparticles display a range of unique properties of interest to fields such as water treatment, drug delivery, catalysis, and many more. Widespread use of magnetic nanoparticles relies heavily on one's ability to separate them effectively from other media, for example in water treatment. In this work, an efficient method to separate magnetic nanoparticles from organic solvent using magnetic ionic liquids is demonstrated for the first time. Fourier transform infrared spectroscopy, ultraviolet–visible spectroscopy, and microscopy were employed to investigate the authors’ model system. This work will greatly impact future directions in the science of separating nanoparticles and applications of ionic liquids.