In recent years, various reports related to sensing application research have suggested that combining the synergistic impacts of optical, electrical or magnetic properties in a single technique can lead to a new multitasking platform. Owing to their unique features of the magnetic moment, biocompatibility, ease of surface modification, chemical stability, high surface area, high mass transference, magnetic nanoparticles have found a wide range of applications in various fields, especially in sensing systems. The present review is comprehensive information about magnetic nanoparticles utilized in the optical sensing platform, broadly categorized into four types: surface plasmon resonance (SPR), surface-enhanced Raman spectroscopy (SERS), fluorescence spectroscopy and near-infrared spectroscopy and imaging (NIRS) that are commonly used in various (bio) analytical applications. The review also includes some conclusions on the state of the art in this field and future aspects.