Magnetic nanoparticles have continued to gather the interest of researchers due to the unique physical properties of materials found at this size scale. Herein, the production of composite magnetic fibers composed of iron oxide nanoparticles suspended in alginate is described. These materials were produced via wet spinning of a sodium alginate solution into a bath of an aqueous solution of calcium chloride. The magnetic fibers were found to have similar mechanical properties to normal alginate fibers, and exhibited superparamagnetic behavior when subjected to an external DC magnetic field. In addition, the particle loaded fibers demonstrated the potential to produce significant amounts of heat when exposed to an AC magnetic field, suggesting these new materials could be applicable to a variety of applications including magnetic hyperthermia. (c) 2013 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 130: 1975-1980, 2013