Ferromagnetic iron dextran particles were prepared by reacting a mixture of ferrous chloride and ferric chloride with dextran polymers under alkaline conditions. Particles purified by gel filtration chromatography were in the size range of 30-40 nm, had an electron dense core of about 15 nm, were stable against aggregation in physiological buffer, showed little non-specific binding to cells and had a magnetic moment. Protein A from Staphylococcus aureus was covalently coupled to periodate-oxidized ferromagnetic iron-dextran particles. These conjugates were used to indirectly label antigen sites on human red blood cells and thymocytes for visualization by scanning and transmission electron microscopy. Cells labeled with these immunospecific ferromagnetic particles are were quantitatively retained by a simple permanent magnet and could be separated from unlabeled cells. Applications of these novel reagents in the separation of cells, cell membranes and receptors in drug targeting studies are discussed.