A short review is given on current conventional hyperthermia technology. As an alternative, heat can also be generated by a magnetic fluid, which is excited by an externally applied AC magnetic field. In contrast to regional Radiofrequency (RF-) systems, Magnetic Fluid Hyperthermia (MFH) is not limited by electric (E-)field boundary effects and heterogeneous tissue conductivity. MFH may become interesting especially for tumors which currently cannot, or only with highly invasive procedures, be treated with hyperthermia, e.g. bone tumors, intrathoracal tumors, tumors of the base of the scull and of the brain. Current physical and biological results of MFH with carcinoma cells in vitro and experimental tumors in vivo are presented. Deeper insights into the mechanism of magnetic fluid power absorption, the use of Magnetic Resonance Imaging (MRI) for treatment planning, advancements of AC magnetic field applicator technology, intracellular hyperthermia, and options for magnetic fluid conjugates with isotopes and drugs are tasks for future research.