Ferrofluids, also known as ferromagnetic particle suspensions, are materials with an excellent magnetic response, which have attracted increasing interest in both industrial production and scientific research areas. Because of their outstanding features, such as rapid magnetic reaction, flexible flowability, as well as tunable optical and thermal properties, ferrofluids have found applications in various fields, including material science, physics, chemistry, biology, medicine, and engineering. Here, a comprehensive, in‐depth insight into the diverse applications of ferrofluids from material fabrication, droplet manipulation, and biomedicine to energy and machinery is provided. Design of ferrofluid‐related devices, recent developments, as well as present challenges and future prospects are also outlined.