In the present work, FeO nanoparticles with superparamagnetic properties were prepared and capped by using Chitosan. The synthesized NPs were studied by using transmission electron microscopy (TEM) and Fourier transform infrared (FTIR) spectroscopy. Average particle size and surface charge of the synthesized NPs were characterized by using Malvern Zetasizer instrument. TEM images showed the morphology and size distribution of uncoated FeO NPs, exhibiting the uniform sized NPS with an average particle size of about 10 nm. Vibrating Scanning Magnetometry (VSM) experiments, showed the superparamagnetic nature of the prepared nanoparticles. FeO NPs showed ferromagnetic magnetization which is very sensitive towards the sample's nanostructure. The results of paramagnetic studies exhibited the substantial reduction in paramagnetic behavior after Chitosan coating but sufficient for responding in magnetic field. Further, the in-vitro ability of the Chitosan coated FeO NPs as contrast agents in efficient Ultra sound/Magnetic resonance (US/MR) imaging was investigated. These findings demonstrated that the Chitosan coated super para magnetic iron oxide nanoparticles (SPION) have reported significant contrast-enhanced imaging potential for dual-mode US/MR imaging. Hence, the prepared Chitosan coated SPION composites administration serve as potential guide in the diagnosis and treatment of cancers.