Chemoselective hydrogenation of substituted nitroaromatic compounds by water-soluble iron complex catalysts with molecular hydrogen has been reported for the first time. This biphasic catalyst presents an opportunity for a solvent-free hydrogenation. This catalyst system provides a low-cost, efficient alternative to the selective but environmentally unacceptable stoichiometric reductions as well as the supported noble metal catalysts used for hydrogenation. An efficient recycling strategy has resulted in a cumulative turnover number above 6000.