The synthesis of heterocyclic compounds has made extensive use of magnetic iron oxide (Fe2O3 and Fe3O4) nanoparticles as a heterogeneous catalyst. They are cheap, readily available, environmentally benign, and comparatively nontoxic catalysts. Crucially, these nanoparticles’ surface modification allows reactivity to be tailored enabling catalysts to be designed for specific uses. Important performance for economically viable industrial processes include the easy recovery and reuse of the magnetic nanoparticles from the reaction mixture by magnetic separation. In recent literature on catalytic applications of magnetic iron oxide NPs numerous reactions are reported viz. selective hydrogenation of nitro-heterocyclic compounds, synthesis of functionalized [1,3]-oxazoles, synthesis of benzothiazepine, spirobenzothiazine chroman derivatives and many more. We have collected various reports from the past twelve years and compiled this review on recent trends in catalytic heterocycles synthesis and other applications of iron oxide nanomaterials.