Stimuli-responsive biomaterials, capable of responding on-demand to changes in their local environment, have become a subject of interest in the field of regenerative medicine. Magneto-responsive biomaterials, which can be manipulated spatiotemporally via an external magnetic field, have emerged as promising candidates as active scaffolds for advanced drug delivery and tissue regeneration applications. These specialized biomaterials can be synthesized by physically and/or chemically incorporating magnetic nanoparticles into the biomaterial structure. However, despite their promising impact on the future of regenerative medicine, magneto-responsive biomaterials still have several limitations that need to be overcome before they can be implemented clinically in a reliable manner, as predicting their behavior and biocompatibility remains an ongoing challenge. This review article will focus on discussing the current fabrication methods used to synthesize magneto-responsive materials, efforts to predict and characterize magneto-responsive biomaterial behavior, and the application of magneto-responsive biomaterials as controlled drug delivery systems, tissue engineering scaffolds, and artificial muscles.