One of the big challenge of studying the core-shell iron nanostructures is to know the nature of oxide shell, i.e., whether it is gamma-Fe2O3 (Maghemite), Fe3O4 (Magnetite), alpha-Fe2O3 (Hematite), or FeO (Wustite). By knowing the nature of iron oxide shell with zero valent iron core, one can determine the chemical or physical behavior of core-shell nanostructures. Fe core-shell nanochains (NCs) were prepared through the reduction of Fe3+ ions by sodium boro-hydride in aqueous solution at room atmosphere, and Fe NCs were further aged in water up to 240min. XRD was used to study the structure of Fe NCs. Further analysis of core-shell nature of Fe NCs was done by TEM, results showed increase in thickness of oxide shell (from 2.5, 4, 6 to 10nm) as water aging time increases (from 0min, 120min, 240min to 360min). The Raman spectroscopy was employed to study the oxide nature of Fe NCs. To further confirm the magnetite phase in Fe NCs, the Mossbauer spectroscopy was done on Fe NCs-0 and Fe NCs-6. Result shows the presence of magnetite in the sample before aging in water, and the sample after prolonged aging contains pure Hematite phase. It shows that prolonged water oxidation transforms the structure of shell of Fe NCs from mixture of Hematite and Magnetite in to pure hematite shell. The Magnetic properties of the Fe NCs were measured by VSM at 320K. Because of high saturation magnetization (Ms) values, Fe NCs could be used as r(2) contrasts agents for magnetic resonance imaging (MRI) in near future.