Figure describes the experimental set up and the two main findings of the paper. The experimental set up consists of a magnetic (PVP coated Fe3O4) NP-laden drop being introduced inside an uncured (or partially cured) PDMS bath. There are two cameras positioned in the X-Z and Y-Z viewing planes to observe the dynamics of the magnetic NP-laden drop (MNLD). The PDMS bath rests on a fixture over a bar magnet stack, which attracts the magnetic-NP-laden drop towards itself. The partially cured PDMS (i.e., outgassed and left for 2 h after mixing crosslinker) has a higher density than the MNLD, and hence in the absence of the magnetic field, the drop will tend to move vertically up inside the PDMS bath. Also, such smaller density of the MNLD implies that if the drop is released at a distance greater than a critical value (i.e., hcr) from the top surface of the magnet, the magnetic force on the drop, which decreases non-linearly with an increase in the distance between the drop and the bar magnet, is smaller than the buoyant force on the drop enforcing the drop to move away from the magnet (see Figure ). Here we consider that the drop is released at a distance (from the magnet) lesser than hcr and this causes the magnetic-field-driven attraction of the MNLD towards the magnet, thereby leading to two distinct effects, namely the NP aggregation inside the drop and the de-encapsulation of such aggregates from the interior of the drop in a manner such that the entire nanoaggregate leaves the drop without the drop getting permanently deformed. Below, we describe these two effects in detail.