Cancer is a major disease that seriously threatens human health and is a leading cause of human death. At present, the commonly used cancer treatment methods are surgical therapy, chemical drug therapy and radiation therapy (RT). However, these treatments all have their own shortcomings and cannot perfectly meet the needs of clinical diagnosis and treatment. It is of great significance to improve the diagnosis and treatment level, so that the curative effect and quality of life of tumor patients can be improved. The rapid development of nanotechnology has brought hope to the diagnosis and treatment of cancer and the appearance of biofunctional magnetic hybrid nanomaterials (MHNs) has provided a new possibilities for the integration of cancer diagnosis and treatment. As a promising research direction, the multifunctional nanoplatform integrates imaging diagnosis, drug therapy and drug delivery. Better treatment effects and fewer side effects can be achieved by optimizing materials to build stable, efficient, and safe MHNs with combined functions of multimodal imaging and various treatments. This review focuses on not only the research progress of MHNs but also their applications and development trend in the integration of cancer diagnosis and treatment. A description of the applications of MHN structure optimization for both magnetic resonance imaging-based multimodal diagnosis and cancer therapy is given. Furthermore, RT is introduced and the development of MHNs for diagnosis and treatment system is investigated.