Metal nanoparticles are extensively studied due to their unique chemical and physical properties, which differ from the properties of their respective bulk materials. Likewise, the properties of heterogeneous bimetallic structures are far more attractive than those of single-component nanoparticles. For example, the incorporation of a second metal into a nanoparticle structure influences and can potentially enhance the optical/plasmonic and magnetic properties of the material. This review focuses on the enhanced optical/plasmonic and magnetic properties offered by bimetallic nanoparticles and their corresponding impact on biological applications. In this review, we summarize the predominant structures of bimetallic nanoparticles, outline their synthesis methods, and highlight their use in biological applications, both diagnostic and therapeutic, which are dictated by their various optical/plasmonic and magnetic properties.