Magnetic gels have been gaining great attention in nanomedicine, as they combine features of hydrogels and magnetic nanoparticles into a single system. The incorporation of liposomes in magnetic gels further leads to a more robust multifunctional system enabling more functions and spatiotemporal control required for biomedical applications, which includes on-demand drug release. In this review, magnetic gels components are initially introduced, as well as an overview of advancements on the development, tuneability, manipulation and application of these materials. After a discussion of the advantages of combining hydrogels with liposomes, the properties, fabrication strategies and applications of magnetic liposome-hydrogel composites (magnetic lipogels or magnetolipogels) are reviewed. Overall, the progress of magnetic gels towards smart multifunctional materials are emphasized, considering the contributions for future developments.