The objective of this review is to investigate the potential of functionalized magnetic polymer composites for use in electromagnetic micro-electro-mechanical systems (MEMS) for biomedical applications. The properties that make magnetic polymer composites particularly interesting for application in the biomedical field are their biocompatibility, their adjustable mechanical, chemical, and magnetic properties, as well as their manufacturing versatility, e.g., by 3D printing or by integration in cleanroom microfabrication processes, which makes them accessible for large-scale production to reach the general public. The review first examines recent advancements in magnetic polymer composites that possess unique features such as self-healing capabilities, shape-memory, and biodegradability. This analysis includes an exploration of the materials and fabrication processes involved in the production of these composites, as well as their potential applications. Subsequently, the review focuses on electromagnetic MEMS for biomedical applications (bioMEMS), including microactuators, micropumps, miniaturized drug delivery systems, microvalves, micromixers, and sensors. The analysis encompasses an examination of the materials and manufacturing processes involved and the specific fields of application for each of these biomedical MEMS devices. Finally, the review discusses missed opportunities and possible synergies in the development of next-generation composite materials and bioMEMS sensors and actuators based on magnetic polymer composites.