Iron-carbon nanocapsules were synthesized by plasma arc discharge (PAD) process under various atmosphere of methane, argon and hydrogen gas. Characterization and surface properties were investigated by means of HRTEM, XRD, XPS and Mossbauer spectroscopy. Fe nanocapsules synthesized were composed of three phases $({alpha}-Fe,;Y-Fe;and;Fe_{3}C)$ with core/shell structures. The surface of nanocapsules was covered by the shell of graphite phase in the thickness of $4{~}5$nm.