The research and development for biomedical applications are recently focused on multifunctional nanoparticles. To integrate various functionalities, different methods of modifying the particle’s physical properties are developed. Among the considered, nanodiamond (ND) is a promising candidate for the development of multifunctional complex due to its variable features in size, structure, surface chemistry, physical properties, and biocompatibility. In addition to its well-studied structural, surface, electrochemical and photonic properties, strong magnetism of ND can be observed. In the present work, magnetically modified ND is introduced in terms of its bioapplications. Along with the soft ferromagnetism of ND, the increased fluorescence at one- and two-photon excitation is realized. Utilizing the combined magnetic and fluorescence properties of the magnetically modified ND, fluorescence imaging, fluorescence lifetime imaging and manipulation of cells by magnetic field are demonstrated. The perspectives to use the magnetic ND for drug delivery, cells magnetic separation and filtration, in bioengineering to control the cell distribution combined with imaging and treatment are discussed.