Superparamagnetic iron oxide nanoparticles (SPIONs) have been synthesized using co-precipitation method. Their microstructure and dielectric properties were studied. The sugar solutions like glucose, fructose and sucrose were used as stabilizers to control the size of the SPIONs. The crystal structure and grain size of the particles were determined by X-ray diffraction. The magnetic studies of the samples were carried out using the vibrating sample magnetometer and their surface morphology was studied by HRTEM, FE-SEM and zeta potential. The dielectric properties of glucose-SPIONs (GF), fructose-SPIONs (FF) and sucrose-SPIONs (SF) were investigated in the frequency range of 10 Hz to 5 MHz at selected temperatures. The FF showed a high dielectric constant of 62 at 1 MHz and the dielectric properties of SPIONs were found to have been significantly improved, especially in the low frequency regime according to the Maxwell-Wagner interfacial polarization. The AC conductivity measurements revealed that the electrical conduction depends on both frequency and temperature. Impedance analysis was carried out using Cole-Cole plot and the conduction mechanism of the studied compounds was explained. R and C values were further calculated using RC-circuit.