Multicompartment nanoparticles have raised great interest for different biomedical applications, thanks to the combined properties of different materials within a single entity. These hybrid systems have opened new avenues toward diagnosis and combination therapies, thus becoming preferred theranostic agents. When hybrid nanoparticles comprise magnetic and plasmonic components, both magnetic and optical properties can be achieved, which are potentially useful for multimodal bioimaging, hyperthermal therapies and magnetically driven selective delivery. Nanostructures comprising iron oxide and gold are usually selected for biomedical applications, as they display size-dependent properties, biocompatibility, and unique physical and chemical characteristics that can be tuned through highly precise synthetic protocols. We provide herein an overview of the most recent synthetic protocols to prepare magnetic-plasmonic nanostructures made of iron oxide and gold, to then highlight the progress made on multifunctional magnetic-plasmonic bioimaging and heating-based therapies. We discuss the advantages and limitations of the various systems in these directions.