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This paper deals with the influence of a biocompatible surface coating layer on the structural, morphological and colloidal and magnetic properties of the MnZnFe 2 O 4 nanoparticles. A series of the MnZnFe 2 O 4 magnetic nanoparticles were synthesized by simple cost-effective co-precipitation technique. Herein, it is found that starch plays an important role in the colloidal stability, dispersibility and the heating efficiency of MNPs. Samples of the resultant magnetic fluid were examined using Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES), X-ray diffraction (XRD), transmission electron microscopy (TEM), Field emission scanning electron microscopy (FESEM), dynamic light scattering, zeta potential measurements, Vibrating sample magnetometry (VSM) and induction heating studies. The average size of the MnZnFe 2 O 4 and MnZnFe 2 O 4 @starch nanoparticles estimated by TEM technique was found to be in the range of 12–15 nm. Magnetometry measurements indicate that superparamagnetic like nature with negligible coercivity and remanence for any of sample. Induction heating efficiency of MnZnFe 2 O 4 nanoparticles under alternating magnetic field was studied by means of specific absorption rate (SAR) measurements, and compared with starch functionalized MnZnFe 2 O 4 nanoparticles. In vitro cytotoxicity on human lung cancer cells studies reveal that tolerable dose rate for MNPs can be significantly high and particles are less toxic in nature. Based on these characterizations of the samples it is suggested that the MnZnFe 2 O 4 ferrites may be a potential candidate for hyperthermia application. [ABSTRACT FROM AUTHOR]