MgFe₂O₄ nanoparticles with sizes around 20 nm have been prepared by a combustion method and functionalized with dextran for their possible applications in magnetic particle hyperthermia. The induction heating study of these nanoparticles at different magnetic field amplitudes, from 6.7 kA m⁻¹ to 26.7 kA m⁻¹, showed self-heating temperature rise up to 50.25 °C and 73.32 °C (at 5 mg mL⁻¹ and 10 mg mL⁻¹ concentrations in water respectively) which was primarily thought to be due to hysteresis losses activated by an AC magnetic field. The dextran coated nanoparticles showed a maximum specific absorption rate (SAR) of about 85.57 W g⁻¹ at 26.7 kA m⁻¹ (265 kHz). Dextran coated nanoparticles at concentrations below 1.8 mg mL⁻¹ exhibit good viability above 86% on mice fibroblast L929 cells. The results suggest that combustion synthesized MgFe₂O₄ nanoparticles coated with dextran can be used as potential heating agents in magnetic particle hyperthermia. Uncoated and dextran coated samples were characterized by X-ray diffraction (XRD), transmission electron microscopy (TEM) and vibrating sample magnetometry (VSM), Fourier transform infrared spectroscopy (FTIR), thermogravimetric-differential thermal analysis (TG-DTA) and zeta potential-DLS studies.