Magnetic nanocomposites have been successfully prepared by encapsulating nanosized entities of iron, cobalt, and nickel compounds in poly(amido-amine) (PAMAM) dendrimer hosts. Problems related to the instability of the magnetic structures under the influence of an external electromagnetic field have been overcome by using a solid polystyrene matrix to embed the dendrimer hosts containing the magnetic guests. SQUID magnetometry measurements on these nanocomposites showed that after subtraction of the diamagnetic polymer background, at 300 K all samples exhibited paramagnetic behavior, with susceptibilities of 1.14, 1.68, and 0.70 × 10−6 m3/kg for Fe-, Co-, and Ni-containing samples respectively. The temperature dependence for T<300 K showed typical paramagnetic behavior, with the susceptibility increasing for decreasing temperatures. Curie-Weiss (1/M vs. T) graphs displayed a linear behavior at high temperatures, with temperature axis intercepts (θ) occurring at –139 K (Fe), –16 K (Co), and 0 K (Ni). Negative deviations from Curie-Weiss behavior occurred at T<175 K for the Fe and T<25 K for the Co samples. Magnetic moments calculated from the high temperature Curie constant indicated that Fe, Co, and Ni possessed effective moments of 3.5, 4.4, and 2.8μB. The negative intercepts and the fact that these moments are larger than those expected for metallic transition metals are indicative that these species are probably present in an oxidized form. The low-temperature behavior indicates either superparamagnetic or soft ferromagnetic behavior.