Iron oxide nanoparticles were employed to fabricate a soft tissue scaffold with enhanced physicochemical and biological characteristics. Growth promotion effect of L-lysine coated magnetite (Lys@Fe3O4 ) nanoparticles on the liver cell lines was proved previously. So, in the current experiment these nanoparticles were employed to fabricate a soft tissue scaffold with growth promoting effect on the liver cells. Lys@Fe3O4 nanoparticles were synthesized via co-precipitation reaction. Resulted particles were ~7 nm in diameter and various concentrations (3, 5, and 10 wt%) of these nanoparticles were used to fabricate nanocomposite PCL fibers. Electrospinning technique was employed and physicochemical characteristics of the resulted nanofibers were evaluated. Electron micrographs and EDX-mapping analysis showed that nanoparticles were well dispersed in the PCL fibers and no bead structure were formed. As expected, incorporation of Lys@Fe3O4 to the PCL nanofibers resulted in a reduction in hydrophobicity of the scaffold. Nanocomposite scaffolds were shown increased tensile strength with increasing concentration of employed nanoparticles. In contrast to PCL scaffold, nearly 150% increase in the cell viability was observed after 3-days exposure to the nanocomposite scaffolds. This study indicates that incorporation of magnetite nanoparticles in the PCL fibers make them more prone to cell attachment. However, incorporated nanoparticles can provide the attached cells with valuable iron element and consequently promote the cells growth rate. Based on the results, magnetite enriched PCL nanofibers could be introduced as a scaffold to enhance the biological performance for liver tissue engineering purposes.