Synthesis of spinel zinc ferrite ultrafine needle-like particles that exhibit exceptional stability in aqueous dispersion (without any surfactants) and superparamagnetic response is reported. Comprehensive structural and magnetic characterization of the particles is performed using X-ray and electron diffraction, small angle X-ray scattering, transmission electron microscopy, dynamic light scattering, vibrating sample magnetometry, Mössbauer spectroscopy and high-resolution X-ray spectroscopy. It reveals nearly stoichiometric ZnFe2O4 nanorods with mixed spinel structure and unimodal size distribution of mean length of 20 nm and diameter of 5 nm. Measurements performed in aqueous and dried form shows that particles’ properties are significantly changed as a result of drying.