This study describes a facile two-step approach to modify the surface of nanoparticles, thereby imparting a core-shell structure to the system. The core consists of magnetic nanoparticles and the shell is composed of thermoresponsive hydroxypropyl cellulose, using a coupling agent to covalently bind the core to the shell. Hydroxypropyl cellulose is known for its biocompatibility and biodegradability, and its thermoresponsive properties make it an excellent candidate for fabricating biocompatible stimuli-responsive magnetic nanoparticles. We report the synthesis of magnetic nanoparticles and the successful binding of the polymer to them. X-ray diffraction studies show that the surface modification of the magnetic nanoparticles does not result in any phase change and the size of the magnetic core thus calculated (7 nm) reveals that such hybrid core-shell system is superparamagnetic in nature, as further confirmed by magnetization measurements. The size obtained by X-ray diffraction is in good agreement with that obtained by transmission electron microscope. Evidence of binding is given by Fourier transform infrared spectroscopy and a quantitative analysis of the polymeric content obtained by thermogravimetry analysis. Dynamic light scattering as a function of temperature reveals the thermoresponsive behavior of the particles with a lower critical solution temperature around 41 degrees C, which is also the temperature at which cellulose undergoes a coil-to-globule transition.