The preparation of Ni@Pd core–shell nanoparticles immobilized on yolk–shell Fe₃O₄@polyaniline composites is reported. Fe₃O₄ nanoclusters were first synthesized through the solvothermal method and then the SiO₂ shell was coated on the Fe₃O₄ surface via a sol–gel process. To prepare Fe₃O₄@SiO₂@polyaniline composites, polyvinylpyrrolidone was first grafted on to the surface of Fe₃O₄@SiO₂ composites and subsequently polymerization of aniline was carried out via an ultrasound-assisted in situ surface polymerization method. Selective etching of the middle SiO₂ layer was then accomplished to obtain the yolk–shell Fe₃O₄@polyaniline composites. The approach uses polyaniline (PANI) conductive polymer as a template for the synthesis of Ni@Pd core–shell nanoparticles. The catalytic activity of the synthesized yolk–shell Fe₃O₄@PANI/Ni@Pd composite was investigated in the reduction of o-nitroaniline to benzenediamine by NaBH₄, which exhibited conversion of 99% in 3 min with a very low content of the catalyst. Transmission electron microscopy, X-ray photoelectron spectroscopy, TGA, X-ray diffraction, UV–visible, scanning electron microscopy, X-ray energy dispersion spectroscopy and FT-IR were employed to characterize the synthesized nanocatalyst. Copyright © 2014 John Wiley & Sons, Ltd.