Oil spills causes marine accidents and natural clamities.8 billion barrels of oil are spilled each year. There are lots of methods available for oil spill recovery. But a recent experiment in lab concludes that magneto-rheological method fit in the best way for recovery. The present invention relates to the field of separating mixtures of Water and oil, and oil spill recovery. Specially this invention concerns separating an organic liquid such as crude oil from Water using a surface-treated iron powder having oleophilic properties. This has minimized the net environmental pollution and provides an efficient way of recovering hydrocarbon spills. The magnetic particle with an organic compound having an oleophilic chain end is treated with iron particles over a hydrocarbon spill. This forms slurry and this magnetic slurry is then allowed to mix with the oil to form the MR fluid. This decreases the flow ability thereby allowing the removal of the MR fluid and oil pollutant. Once the oil pollutant and MR fluid are removed, it is treated with detergents to remove the oil from MR fluid. All these experiments are carried out in the lab scale. Iron particles can be recycled & reused. High clean up efficiency is obtained by this method. The present invention overcomes the obstacles in utilizing the affiliation of the hydrocarbons in an oil spill to reacted, oleophilic iron particles of magneto rheological (MR) fluids to provide for a method of oil spill recovery that has much greater potential for oil spill recovery in a variety of applications and is reusable and recyclable for multiple applications. Keywords: Oil spills, Magneto-Rheological, MR fluid, Organic, Pollutant, Slurry, Recovery