We study dynamical and thermal effects that are induced in nanoparticle systems by a rotating magnetic field. Using the deterministic Landau-Lifshitz equation and appropriate rotating coordinate systems, we derive the equations that characterize the steady-state precession of the nanoparticle magnetic moments and study a stability criterion for this type of motion. On this basis, we describe ͑i͒ the influence of the rotating field on the stability of the small-angle precession, ͑ii͒ the dynamical magnetization of nanoparticle systems, and ͑iii͒ the switching of the magnetic moments under the action of the rotating field. Using the backward Fokker-Planck equation, which corresponds to the stochastic Landau-Lifshitz equation, we develop a method for calculating the mean residence times that the driven magnetic moments dwell in the up and down states. Within this framework, the features of the induced magnetization and magnetic relaxation are elucidated.