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A new magnetic nanocarrier for the targeted delivery of hydrophobic drugs was developed by modifying magnetic nanoparticles with gum arabic and grafting with 2-hydroxypropyl-cyclodextrins (HCD) using hexamethylene diisocyanate (HMDI) as a linker. The size, hydrodynamic diameter, and grafting of HCD were characterized. The resultant magnetic nanocarrier exhibited an excellent capability to load all-trans-retinoic acid (ATRA), an anticancer agent. The better biocompatibility and the combined properties of specific targeting and complexation ability with hydrophobic drugs make the nanosystem an exciting prospect for targeted delivery of hydrophobic drugs.