The paper presents results of research on preparing the magnetic fluid based on Fe 3 O 4 nanoparticles and its potential hyperthermia application. Magnetic fluids were manufactured by dissolving superparamagnetic nanoparticles coated by suitable biocompatible starch layer during the co-precipitation processing. The coated particle size changes in range of 15÷ 17 nm were characterized by FESEM images. At room temperature, the samples exhibit super-paramagnetic behaviour with a saturation moment of 65 emu/g. The concentration of magnetic nanoparticles contained in carried liquid reach to 15 mg/ml. The magnetic fluid was used as a mediator for heating by an AC magnetic field with the frequency of 184 kHz and field strength of 12 kA/m. The dependence of heating on nanoparticle concentration was observed and it implied that the magnetic fluid is a suitable mediator for cancer treatment by hyperthermia application with appropriate controlling the heating temperature ranges from 45 to 50 C.