Organic and inorganic compounds utilised at different stages of various industrial processes are lost into effluent water and eventually find their way into fresh water sources where they cause devastating effects on the ecosystem due to their stability, toxicity, and non-biodegradable nature. Semiconductor photocatalysis has been highlighted as a promising technology for the treatment of water laden with organic, inorganic, and microbial pollutants. However, these semiconductor photocatalysts are applied in powdered form, which makes separation and recycling after treatment extremely difficult. This not only leads to loss of the photocatalyst but also to secondary pollution by the photocatalyst particles. The introduction of various magnetic nanoparticles such as magnetite, maghemite, ferrites, etc. into the photocatalyst matrix has recently become an area of intense research because it allows for the easy separation of the photocatalyst from the treated water using an external magnetic field. Herein, we discuss the recent developments in terms of synthesis and photocatalytic properties of magnetically separable nanocomposites towards water treatment. The influence of the magnetic nanoparticles in the optical properties, charge transfer mechanism, and overall photocatalytic activity is deliberated based on selected results. We conclude the review by providing summary remarks on the successes of magnetic photocatalysts and present some of the future challenges regarding the exploitation of these materials in water treatment.