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Research on nanocomposite materials aims at developing nanoscale composites with innovative optical, chemical, and magnetic properties, all combined in one single nanostructure. In this scenario, nanostructures which show simultaneously fluorescent and magnetic features are of particular interest for pharmaceutical and biomedical applications. In this review, we will focus our attention on magnetic-fluorescent nanocomposite based on colloidal iron oxide nanocrystals combined with different classes of fluorophores which can be either organic dyes, such as fluorescents, cyanines, porphyrins, or colloidal quantum dots. We will give an overview of the preparation methods of the magnetic-fluorescent nanocomposites that are now available and we will outline the most significant in vitro studies of such nanocomposites on living cells. Some examples of their applications in biology and medicine will also be discussed.