Magnetoliposomes have gained increasing attention as delivery systems, as they surpass many limitations associated with liposomes. The combination with magnetic nanoparticles provides a means for development of multimodal and multifunctional theranostic agents that enable on-demand drug release and real-time monitoring of therapy.Areas covered: Recently, several magnetoliposome structures have been reported to ensure efficient transport and delivery of therapeutics, while improving magnetic properties. Besides, novel techniques have been introduced to improve on-demand release, as well as to achieve sequential release of different therapeutic agents. This review presents the major types and methods of preparation of magnetoliposomes, and discusses recent strategies in the trigger of drug release, development of theranostic formulations, and delivery of drugs and biological entities.Expert opinion: Despite significant advances in efficient drug delivery, current literature lacks an assessment of formulations as theranostic agents and complementary techniques to optimize thermotherapy efficiency. Plasmonic magnetoliposomes are highly promising multimodal and multifunctional systems, providing the required design versatility to optimize theranostic capabilities. Further, photodynamic therapy and delivery of proteins/genes can be improved with a deeper research on the employed magnetic material and associated toxicity.A scale-up procedure is also lacking in recent research, which is limiting their translation to clinical use.