Multifunctional magnetoplasmonic (Au-Fe(x)O(y)) nanomaterials are characterized by some features of iron oxide and gold, such as surface chemistry, special optical properties, and superparamagnetic properties, which have helped to draw much attention to their biomedical applications. In this review, the state of the art of this rapidly developing field is described. We review the developments in different approaches to integrating the magnetic and plasmonic properties in a single nanoparticle with different morphological traits. Specific plasmonic and magneto-optical properties of magnetoplasmonic nanoparticles are explained; this information should shed light on the future development of multifunctional magnetoplasmonic nanomaterials. We also review cytotoxicity of magnetoplasmonic nanoparticles by in vitro and in vivo studies. With the multifunctional properties of magnetoplasmonic nanomaterials, a variety of applications such as biosensor, bioseparation, multimodal imaging, and therapeutics is possible and is highlighted here, in addition to outlining the future trends and perspectives of these sophisticated nanocomposites.