This study explores the application of a wall-attached ferrofluid film to decrease skin-friction drag in turbulent channel flow. We conduct experiments using water as a working fluid in a turbulent channel flow set-up, where one wall is coated with a ferrofluid layer held in place by external permanent magnets. Depending on the flow conditions, the interface between the two fluids is observed to form unstable travelling waves. While ferrofluid coating has been previously employed in laminar and moderately turbulent flows (Reynolds number Re<4000) to reduce drag by creating a slip condition at the fluid interface, its effectiveness in fully developed turbulent conditions, particularly when the interface exhibits instability, remains uncertain. Our primary objective is to assess the effectiveness of ferrofluid coating in reducing turbulent drag with particular focus on scenarios when the ferrofluid layer forms unstable waves. To achieve this, we measure flow velocity using two-dimensional particle tracking velocimetry (2D-PTV), and the interface contour between the fluids is determined using an interface tracking algorithm. Our results reveal the significant potential of ferrofluid coating for drag reduction, even in scenarios where the interface between the surrounding fluid and ferrofluid exhibits instability, with observed drag reduction rates up to 95 %. In particular, waves with an amplitude significantly smaller than a viscous length scale positively contribute to drag reduction, while larger waves are detrimental, because of induced turbulent fluctuations. However, for the latter case, slip outcompetes the extra turbulence so that drag is still reduced.