Recent advances in nanomaterials science contributed to develop new micro- and nano-devices as potential diagnostic and therapeutic tools in the field of oncology. The synthesis of superparamagnetic nanoparticles (SPMNPs) has been intensively studied, and the use of these particles in magnetic hyperthermia therapy has demonstrated successes in treatment of cancer. However, some physical limitations have been found to impact the heating efficiency required to kill cancer cells. Moreover, the bio-safety of NPs remains largely unexplored. The primary goals of this review are to summarize the recent progress in the development of magnetic nanoparticles (MNPs) for hyperthermia, and discuss the limitations and advances in the synthesis of these particles. Based on this knowledge, new perspectives on development of new biocompatible and biofunctional nanomaterials for magnetic hyperthermia are discussed.