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Core-shell nanostructures are promising candidates for the next generation of catalysts due to synergistic effects which can arise from having two active species in close contact, leading to increased activity. Likewise, catalysts displaying added functionality, such as a magnetic response, can have increased scientific and industrial potential. Here, Pd/Fe3O4 core-shell nanowire clusters are synthesized and applied as hydrogenation catalysts for an industrially important hydrogenation reaction: the conversion of acetophenone to 1-phenylethanol. During synthesis, the palladium nanowires self-assemble into clusters which act as a high-surface-area framework for the growth of a magnetic iron oxide shell. This material demonstrates excellent catalytic activity due to the presence of palladium while the strong magnetic properties provided by the iron oxide shell enable facile catalyst recovery. [ABSTRACT FROM AUTHOR]