Surface functionalization of magnetic nanoparticles is an elegant way to bridge the gap between heterogeneous and homogeneous catalysis. We have conveniently loaded sulfonic acid groups on amino-functionalized Fe3O4 nanoparticles affording sulfamic acid-functionalized magnetic Fe3O4 nanoparticles (MNPs/DAG-SO3H) as an active and stable magnetically separable acidic nanocatalyst, which was characterized using X-ray diffraction, Fourier transform infrared and energy-dispersive X-ray spectroscopies, scanning and transmission electron microscopies, vibrating sample magnetometry and elemental analysis. The catalytic activity of MNPs/DAG-SO3H was probed through one-pot synthesis of N-substituted pyrroles from γ-diketones and primary amines in aqueous phase at room temperature. The heterogeneous catalyst could be recovered easily by applying an external magnet device and reused many times without significant loss of its catalytic activity.