Abstract: Polyhedral magnetic iron oxide nanocrystals with multiple facets have been embedded in biocompatible and biodegradable polymeric matrices in order to study their structural, magnetic features and alternating-current (AC) magnetic heating efficiency. The encapsulation of iron oxide nanoparticles into a polymer matrix was confirmed by transmission electron microscopy and further corroborated by high angle annular dark field scanning transmission electron microscopy (HAADF-STEM). HAADF-STEM tomography proved that the iron oxide nanocrystals consist of well-defined polyhedral structures with multiple facets. The magnetic features were found to be in good agreement with the structural and morphological features and are maintained even after encapsulation. Furthermore, the magnetic nanoparticles inside these matrices may be considered as good candidates for biomedical applications in hyperthermia treatments because of their high heating capacity exhibited under an alternating magnetic field. The anticancer Taxol drug was encapsulated in these nanoparticles and its physical state and release rate at 37 and 42 °C was studied.