Nanoparticles show promise for biomedical imaging and diagnosis due to their large size and multifunctionality compared to small molecules. Magnetic iron oxide nanoparticles are commonly used in MRI because they shorten T2 relaxation times, allowing hydrogen protons to move closer to the magnet and produce clearer images. Various types of functionalized magnetic nanoparticles including amine, carboxyl, epoxy and IDA functionalized nanoparticles are used for applications like immunoassay, gene transfection, biomolecule separation, cell separation, enzyme immobilization, drug delivery, and biomedical imaging. Nanoparticles also show potential for targeted cancer drug delivery and simultaneous imaging and therapy.