Room temperature magnetic properties have been achieved for nano-crystalline iron phosphide synthesized from the direct solid state reaction of iron chloride and tri-octylphosphine (TOP). The magnetization continuously increased with higher magnetic fields, indicating a super-paramagnetic behavior. It is observed that room temperature magnetism is possible for the material showing antiferromagnetic nature at low temperatures. In the present synthesis, TOP acted as a source of phosphorus as well as a surfactant. X-ray diffraction (XRD) studies revealed that the black powder is a mixture of FeP and Fe(2)P. Transmission electron microscopy (TEM) and scanning electron microscopy (SEM) showed elongated as well spherical particles. Energy dispersion X-ray analysis (EDAX) confirmed a non-stoichiometric iron phosphide. Presence of TOP was confirmed by infra-red (IR) spectroscopy, and thermo-gravimetric analysis (TGA) indicated about 6% wt. loss due to presence of organics.