Stable iron nanoparticles have been synthesized from naturally occurring and abundant Fe-containing bio-precursors, namely hemoglobin and myoglobin. The formation of stable iron nanoparticles was achieved through a one-pot, single-phase chemical reduction approach. The reduction of iron ions present in the bio-precursors was carried out at room temperature and avoids the use of harsh chemical reagents. The size distribution of the product falls into the narrow 2-5 nm range and the particles were found to be crystalline. This method can be a valuable synthetic approach for producing bio-conjugated nanoparticle systems for biological applications.