Herein, we propose a simpler synthesis of low-cost multiphase reduced iron oxide nanoparticles (r-IOD) as (Fe@Fe3O4@Fe2O3), which have been synthesized from steel-industry-liberated iron oxide dust (IOD) via a one-pot chemical reduction method. These r-IOD have effectively catalyzed the aqueous phase reduction of 4-nitrophenol (PNP), 2,4-dinitrophenol (DNP), and 2,4,6-trinitrophenol (TNP) to their respective amine derivatives in the presence of sodium borohydride notably at room temperature. A plausible mechanism is also been proposed based on the UV-visible absorption of intermediates and the XRD analysis of the spent catalyst.