In the field of biomedicine, magnetic particles have a significant role, owing to their low production cost and the possibility to control their characteristics, like size, shape and ability to tailor the cellular interactions, in order to promote their involvement in the development of novel therapies. Biofunctionalisation is by far, the most studied aspect, since it provides multifunctionality (e.g. increased biocompatibility and biodistribution, or cytotoxicity and toxic selectivity mechanisms). In this framework, this explorative study is devoted to development and characterization of the biotin functionalized magnetic hybrid particles, comprised of a hydrophilic magnetite, synthesized by co-precipitation, in the presence of Pluronic F-127, and a biotinylated N-palmitoyl chitosan matrix. Microscopy images, corroborated with FT-IR spectroscopy results and thermal analysis data confirmed the hybrid structure - multiple magnetite crystallites entrapped in the biofunctionalized polymer matrix, whilst the magnetic assays indicated adequate magnetic properties for biomedical applications. In vitro investigations highlighted that biotin functionalized magnetic hybrid particles are biodegradable and biocompatible, whilst hemocompatibility assessment revealed no significant modifications of blood coagulation times. To conclude, biotin functionalized magnetic hybrid particles exhibited promising assets for future biomedical applications as drug delivery systems or theranostic agents.