Magnetic nanoparticles have been studied extensively for biomedical applications over the past decades. One of the promising applications of magnetic nanoparticles is hyperthermia, which refers to thermal treatment for cancer. To achieve adequate heat at target sites, it is essential to develop magnetic nanoparticles with high heating efficiency and to optimize external magnetic fields. Here, we discuss the heating mechanism of magnetic nanoparticles, the influence of the intracellular environment on magnetic behavior and heat generation, and recent advances in methods of heating efficiency assessment.