Magnetically-activated lipid nanocarriers have become a research hotspot in the field of biomedicine. Liposomes and other lipid-based carriers possess good biocompatibility as well as the ability to carrying therapeutic cargo with a range of physicochemical properties. Previous studies have demonstrated that magnetic materials have potential wide applications in clinical diagnosis and therapy, such as in MRI as contrast agents and in hyperthermic obliteration of cancer tissues. More recently magneto-thermal activation of lipid carriers to stimulate drug release has extended the range of further therapeutic benefits. Here, an overview of the current development of magnetically-activated lipid nanocarriers in the field of biomedicine is provided, including the methods of fabrication of the nanocarriers and their in vitro and in vivo performance. A discussion of the current barriers to translation of these materials as medicines is provided in the context of clinical and regulatory complexities of using magnetically responsive materials in therapeutic applications. This article is categorized under: Therapeutic Approaches and Drug Discovery > Emerging Technologies Biology-Inspired Nanomaterials > Lipid-Based Structures Implantable Materials and Surgical Technologies > Nanomaterials and Implants.