Human-like collagen (HLC)-coated monodispersed superparamagnetic Fe3O4 nanoparticles have been successfully prepared to investigate its effect on heat induction property and cell toxicity. After coating of HLC, the sample shows a faster rate of temperature increase under an alternating magnetic field although it has a reduced saturation magnetization. This is most probably a result of the effective heat conduction and good colloid stability due to the high charge of HLC on the surface. In addition, compared with Fe3O4 nanoparticles before coating with HLC, HLC-coated Fe3O4 nanoparticles do not induce notable cytotoxic effect at higher concentration which indicates that HLC-coated Fe3O4 nanoparticles has improved biocompatibility. Our results clearly show that Fe3O4 nanoparticles after coating with HLC not only possess effective heat induction for cancer treatment but also have improved biocompatibility for biomedicine applications.