Magnetic fluid with high dispersion and heating performance was developed using 30 to 50nm platelet Fe3O4 particles. This fluid was prepared by mechanical dispersion in ethyl alcohol with a silane coupling agent, bonding with polyethylene glycol (PEG), and removal of aggregates formed by precipitation. The peak diameter of the resulting Fe3O4 particles, measured by dynamic light scattering, was approximately 150nm. The fluid exhibited a 300W/g specific loss power (measured at 114kHz by a 50.9kA/m magnetic field). Distribution of the Fe3O4 particles in tissues was observed by intravenously administrating the fluid in mice. The Fe3O4 particles passed through the lungs, and were uniformly distributed throughout the liver and spleen. High dispersion and high heating performance were simultaneously achieved in the magnetic fluid using platelet Fe3O4 particles surface modified with PEG.