Using Monte Carlo (MC) computer simulations we explore the self-assembly and ordering behavior of a hybrid, soft magnetic system consisting of small magnetic nano-spheres in a liquid-crystalline (LC) matrix. Inspired by recent experiments with colloidal rod-matrices we focus on conditions where the sphere and rod diameters are comparable. Already in the absence of a magnetic field, the nematic ordering of the LC can stabilize formation of magnetic chains along the nematic or smectic director, yielding a state with local (yet no macroscopic) magnetic order. The chains, in turn, increase the overall nematic order, reflecting the complex interplay of the structure formation of the two components. Increasing the sphere diameter the spontaneous uniaxial ordering is replaced by biaxial lamellar morphologies characterized by alternating layers of rods and magnetic chains oriented perpendicular to the rod's director. These novel ordering scenarios at zero field suggest complex response of the resulting hybrid to external stimuli such as magnetic fields and shear forces.Mixtures of magnetic nanoparticles (MNP) in liquidcrystalline (LC) matrices attract attention in fundamental physics and material science since about four decades ago: in 1970, Brochard and de Gennes [1] predicted, based on free energy considerations, various new effects including spontaneous magnetization in the liquid state, "compensated" phases and giant field-induced effects. Whereas the field sensitivity has been investigated and verified in many experiments [2][3][4][5][6][7][8], new interest was stimulated by the recent discovery of spontaneous magnetic ordering in a hybrid system of large, micron-sized magnetic plates embedded in a lyotropic nematic LC [9]. A crucial ingredient for the observed behavior are the LCmediated interactions stemming from local distortions of the LC director via the presence of the plates, whose size is much larger than that of the LC molecules. Indeed, LC-mediated elastic interactions and their consequences for colloidal self-assembly and ordering have intensively studied by experiments [10] and simulations [11,12] for many (non-magnetic) colloid/LC mixtures.In the present letter we focus on the opposite case of small MNPs in LC matrices, where the sizes are comparable and distortions of the LC do not play a significant role. An example of such systems are lyotropic suspensions of colloid pigment rods and magnetite MNPs which have been recently studied to investigate field-induced ordering effects [13, 14]. However, although there is strong interest in using such hybrids as new, stimuli-responsive or even adaptive materials [9], the microscopic structure of small MNPs in LC matrices is essentially unexplored; although this is clearly a prerequisite in terms of advancing new functionalities. Experimentally, the challenge is to actually "see" the relatively small MNPs with typical diameters of 10-15 nm; a solution of this problem might be provided by recently developed tomography techniques [15]. Suprisingly, however, the...