A flexible composite suitable for MHz frequency application has been developed by combining Fe3O4 and polyvinyl alcohol (PVA). The loss factor and the permeability have been evaluated. At an optimum weight percentage of Fe3O4 in the PVA matrix, the frequency at which the loss factor gives a minimum shifts to the MHz region. The loss factor has been found to be lower by one order of magnitude at 70 MHz compared to the presently used nickel zinc ferrite. The Henkel plot and the Cole-Cole plot have been obtained for the understanding of the high magnetic permeability and the low loss factor.