In this paper, we discuss the synthesis and electrochemical properties of a new material based on iron oxide nanoparticles stabilized with poly(diallyldimethylammonium chloride) (PDAC); this material can be used as a biomimetic cathode material for the reduction of H₂O₂ in biofuel cells. A metastable phase of iron oxide and iron hydroxide nanoparticles (PDAC–FeOOH/Fe₂O₃-NPs) was synthesized through a single procedure. On the basis of the Stokes–Einstein equation, colloidal particles (diameter: 20nm) diffused at a considerably slow rate (D=0.9×10⁻¹¹ms⁻¹) as compared to conventional molecular redox systems. The quasi-reversible electrochemical process was attributed to the oxidation and reduction of Fe³⁺/Fe²⁺ from PDAC–FeOOH/Fe₂O₃-NPs; in a manner similar to redox enzymes, it acted as a pseudo-prosthetic group. Further, PDAC–FeOOH/Fe₂O₃-NPs was observed to have high electrocatalytic activity for H₂O₂ reduction along with a significant overpotential shift, ΔE=0.68V from −0.29 to 0.39V, in the presence and absence of PDAC–FeOOH/Fe₂O₃-NPs. The abovementioned iron oxide nanoparticles are very promising as candidates for further research on biomimetic biofuel cells, suggesting two applications: the preparation of modified electrodes for direct use as cathodes and use as a supporting electrolyte together with H₂O₂.