From the standpoint of current science and engineering, iron oxide particles exhibit remarkable physical and structural features, particularly in the nanoscale range. Several methods have been studied to fabricate magnetic iron oxide nanoparticles and determine how they affect the size, size distribution, elemental composition, crystal structure, and a variety of other physical properties of nanoparticles. Advances in surface chemistry strategies for the functionalization of iron oxide-based magnetic nanoparticles (IONPs) are also explained. This review aims to present a summary of emerging activity relating to composite magneto-fluorescent nano-objects. Due to the high surface energies of iron oxide nanoparticles, agglomeration over time is often encountered. It is thus of prime importance to modify their surface to prevent aggregation and limit non-specific adsorption of fluorescent molecules onto it. Furthermore, the diverse strategies for the covalent linking with fluorescent organic dyes have been discussed, and the chemically relevant steps have been explained in detail. Surface coating and functionalization of iron oxide NPs allow them to attach to fluorescent molecules and prevent photoluminescence quenching entities by the magnetic core, making them a promising candidate for nondestructive magnetic inspections based on nanoparticles.