Investigating magnetic phenomena at the microscopic level has emerged as an indispensable research domain in the field of low-dimensional magnetic materials. Understanding quantum phenomena that mediate the magnetic interactions in dimensionally confined materials is crucial from the perspective of designing cheaper, compact, and energy-efficient next-generation spintronic devices. The infrequent occurrence of intrinsic long-range magnetic order in dimensionally confined materials hinders the advancement of this domain. Hence, introducing and controlling the ferromagnetic character in two-dimensional materials is important for further prospective studies. The interface in a heterostructure significantly contributes to modulating its collective magnetic properties. Quantum phenomena occurring at the interface of engineered heterostructures can enhance or suppress magnetization of the system and introduce magnetic character to a native non-magnetic system. Considering most 2D magnetic materials are used as stacks with other materials in nanoscale devices, the methods to control the magnetism in a heterostructure and understanding the corresponding mechanism are crucial for promising spintronic and other functional applications. This review highlights the effect of electric polarization of the adjacent layer, changed structural configuration at the vicinity of the interface, natural strain induced by lattice mismatch, and exchange interaction in the interfacial region in modulating the magnetism of heterostructures of van der Waals and non-van der Waals materials. Further, prospects of interface-engineered magnetism in spin-dependent device applications are also discussed.