MgFe2O4/ZrO2 composites containing ZrO2 in different weight percentages from 0% to 80% were prepared via the citrate gel technique as potential candidate materials for magnetic hyperthermia. The biocompatible ceramic ZrO2 was introduced to prevent MgFe2O4 nanoparticles from aggregation and to reduce their dipolar interactions in order to enhance the specific absorption rate (SAR). Structural and magnetic properties of the samples were studied using powder X-ray diffraction (XRD), transmission electron microscopy (TEM) and a vibrating sample magnetometer (VSM). Magnetically induced heating in radio frequency (RF) magnetic fields was observed in all samples. Most significantly, the sample with only 20wt% MgFe2O4 has been found to have a SAR that is larger than that of pure MgFe2O4. This is an important finding from the point of view of biomedical applications, because ZrO2 in known to have low toxicity and a higher biocompatibility as compared to ferrites.