A simple, hasty and eco-friendly approach for the synthesis of iron nanoparticles has been developed using the medicinally important Azadirachta indica extract, which act as both reducing and stabilizing agent. The formation and morphological properties of iron nanoparticles as a function of metallic precursor and Azadirachta indica extract concentration have been investigated. The influence of solvent over the size and texture of iron nanoparticles has also been evaluated in detail. The thermal behavior of prepared nanoparticles was identified from thermogravimetric analysis. Furthermore, the catalytic activity of prepared iron nanoparticles toward the reduction of p-nitrophenol was analyzed and the reduction process was occurred within 30 sec. The cost and time efficient biosynthesis process and excellent catalytic activity of the prepared iron nanoparticles construct this protocol attractive.