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Multifunctional nanoparticles show great potential in the biomedical field and may help the diagnosis and therapy of diseases. Superparamagnetic nanoparticles are especially attractive because of their ability to dissipate thermal energy in an alternating magnetic field. Furthermore, plasmonic nanoparticles can be effectively used in non- or minimally invasive therapy of tumors exploiting their plasmonic photothermal effect. Here, hybrid plasmonic-magnetic Ag/Fe2O3nanoparticles are made by flame aerosol technology. These nanoparticles can be in situ encapsulated with an amorphous nanothin SiO2film to facilitate their dispersion and block any toxicity from Ag/Fe2O3. Detailed physicochemical characterization, including electron microscopy, electron dispersive X-ray spectroscopy, and X-ray diffraction, is performed. Furthermore, their magnetic properties are characterized in detail by monitoring their hysteresis, first-order-reversal-curves, and isothermal remanent magnetization. Finally, the effect of SiO2and Ag-content on the specific absorption rate (SAR) of the hybrid Ag/Fe2O3nanoparticles is investigated. The obtained understanding will help the rational design and engineering of multifunctional hybrid nanoprobes targeting specific biomedical applications.