Biosensors-on-chip (BoC), compact and affordable public diagnostic devices, are vital for preventing health crises caused by viral and bacterial mutations, climate change, and poor diets. Clinical, remote, and field use are possible with these devices. BoC is used in food safety, environmental monitoring, and medical diagnosis. The coupling of tunneling magnetoresistance (TMR) sensing elements in chip form with surface functionalized green synthesized iron oxide nanoparticles (GS-IONPs) as a biomarker, known as TMR/GS-IONPs, allows BoC devices to be made. The functional framework of BoC based on TMR/GS-IONPs, the instrument system, and biomolecule immobilization are covered in this review. This review aims to overview the recent research on a biosensor using TMR technology with IONPs biomarkers and discusses its future advances in point-of-care diagnostics. TMR sensor has revolutionized low-magnetic field sensing technologies, yet biosensing faces challenges. Large magnetization of IONPs to generate sufficient stray-field to disturb its magnetic moment, compact and inexpensive instrumentation to sense the low voltage yielded by the TMR/GS-IONPs system, and high-selectivity bio-analyte immobilization to the surface of IONPs to increase sensor sensitivity are the notable issues. Additionally, improving device performance requires creating high-TMR materials. Despite challenges, research and technological advances hold great promise for TMR/GS-IONP bioapplications.