Recently the preparation magnetic nanoparticles by a pulsed laser ablation in liquid has gained much attention because it is easy to control experimental parameters. Iron oxide magnetic nanoparticles have been prepared by a pulsed laser ablation of ${alpha}-Fe_2O_3$ target in ethanol at different magnitude of laser energy of 1, 20, 40 and 80 mJ/pulse. It revealed that particle size increases with increasing laser energy. It could be concluded that 40 mJ/pulse is an optimum laser energy for the preparation of iron oxide nanoparticles with uniform size distribution. The nanoparticles are homogeneously dispersed in ethanol and their stability maintained for several months.