The superposition principle is one of the main tenets of quantum mechanics. Despite its counterintuitiveness, it has been experimentally verified using electrons, photons, atoms, and molecules. However, a similar experimental demonstration using a nano or a micro particle is non-existent. Here in this article, exploiting macroscopic quantum coherence and quantum tunneling, we propose an experiment using a levitated magnetic nanoparticle to demonstrate such an effect. It is shown that the spatial separation between the delocalized wavepackets of a 20nm ferrimagnetic yttrium iron garnet (YIG) nanoparticle can be as large as 5 μm. We argue that, in addition to using for testing one of the most fundamental aspects of quantum mechanics, this scheme can simultaneously be used to test different modifications, such as wavefunction collapse models, to the standard quantum mechanics. Furthermore, we show that the spatial superposition of a core-shell structure, a YIG core and a nonmagnetic silica shell, can be used to probe quantum gravity.