Nanocomposites obtained by integrating iron oxide magnetic nanoparticles (Fe3O4) into a metal-organic framework (HKUST-1 or Cu3(BTC)2, BTC = 1,3,5-benzenetricarboxylate) are synthesized through conversion from a composite of a Cu-based ceramic material and Fe3O4. In situ small-angle X-ray scattering (SAXS) and wide-angle X-ray scattering (WAXS) measurements reveal that the presence of Fe3O4 leads to the fast conversion and synthesis of HKUST-1 with small particle sizes. The prepared MOF composite (Fe3O4@HKUST-1) is found to catalyze the one-pot sequential deacetalization-Knoevenagel condensation reaction as a magnetically collectable and recyclable catalyst. In addition, Pd nanoparticles are also incorporated into the material (Pd/Fe3O4@HKUST-1) by addition of a Pd colloidal solution during the conversion of the precursor composite to HKUST-1. The resulting Pd/Fe3O4@HKUST-1 can be utilized for hydrogenation of 1-octene in the liquid phase.