The overuse of antibiotics is the main reason for the expansion of multidrug-resistantmicroorganisms, especially, pathogenic fungi, such as Candida albicans and others.Nanotechnology provides an excellent therapeutic tool for pathogenic fungi. Several reportsfocused on metal oxide nanoparticles, especially, iron oxide nanoparticles due to their extensiveapplications such as targeted drug delivery. Using biological entities for iron oxide nanoparticlesynthesis attracted many concerns for being eco-friendly, and inexpensive. The fusion ofbiologically active substances reduced and stabilized nanoparticles. Recently, the advancementand challenges for surface engineered magnetic nanoparticles are reviewed for improving theirproperties and compatibility. Other metals on the surface nanoparticles can enhance theirbiological and antimicrobial activities against pathogenic fungi. Furthermore, conjugationof antifungal drugs to magnetic nanoparticulate increases their antifungal effect, antibiofilmproperties, and reduces their undesirable effects. In this review, we discuss different routes forthe synthesis of iron oxide nanoparticles, surface coating manipulation, their applications asantimicrobials, and their mode of action.