To prepare an alcohol-based magnetic fluid which can be applied as an alcohol fuel capable of being held by a magnetic field and as an alcohol component capable of being held by a magnetic field in a heat pipe and permitting heat exchange to be regulated by a magnetic field, and to provide a process for preparing the same.

This alcohol-based magnetic fluid comprises an alcohol, a surfactant, a liquid crystalline compd. which is liq. at a predetermined temp., and a magnetic metal oxide and/or a magnetic metal particle. The process for preparing the alcohol-based magnetic fluid comprises the steps of: adding an alkali agent to a dispersion contg. a magnetic metal oxide and/or magnetic metal particle, and a surfactant to prepare an alkaline dispersion; adjusting the alkaline dispersion to a pH value of not more than 2; drying the alkaline dispersion; and mixing the dried dispersion, a liq. crystalline compd. and an alcohol.