<p>Magnetic hyperthermia (MHT) has been under investigation as an adjuvant therapy, which utilizes heat generated by magnetic nanoparticles (MNPs) under an alternating magnetic field (AMF) to ultimately target cancerous cells and destroy them. This review provides comprehensive overview on fundamental principles and underlying mechanisms of heat generation, and biological effects within therapeutic windows to establish understanding of potential in clinical use of magnetic hyperthermia. Nanotechnology helps in improving hyperthermia efficiency using nanomaterials (NMs). NMs act as heat mediators in this process as they possess a high specific absorption rate (SAR) which aids in converting the energy from an alternating magnetic field to localized heat. The review also delves into parameters for optimizing the NMs to increase efficacy and maximize the outputs. Parameters like optimizing the size, shape, surface charge and surface functionalization play an important role in refining this technology for fruitful clinical setup. Furthermore, the review also addresses the characterization techniques required for analyzing the structural, thermal and magnetic properties. The paper also concludes by outlining future directions for continued innovations in cancer treatment.</p>