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A new type of Heusler nanoparticles of the formula Fe3Ga has been prepared by facile synthesis approaches using pre-fabricated multi-walled carbon nanotubes. The tubes act as a template and a coating to protect the magnetic material from oxidation and agglomeration. For the purpose of comparison, the Fe3Ga bulk material was also prepared by a novel method from the metal precursors. The morphology, structural determinations and the magnetic properties of both types of materials are presented. Compared to the bulk material, an enhancement in coercivity was observed for the nanoparticles which make them excellent candidates for magnetic storage devices. Since bulk Galfenol is a known magnetostrictive material, it is worth studying the effect of downsizing this material to the nanoscale dimension on such properties. [ABSTRACT FROM AUTHOR]