The effect of an external magnetic field on the forced convection heat transfer and pressure drop of water based Fe3O4 nanofluid (ferrofluid) in a miniature heat sink is studied experimentally. The heat sink with the dimensions of 40 mm (L) × 40 mm (W) × 10 mm (H) consists of an array of five circular channels with diameter and length of 4 and 40 mm, respectively. It is heated from the bottom surface with a constant heat flux while the other surfaces are insulated. The heat sink is also influenced by an external magnetic field generated by an electromagnet. The local convective coefficients are measured at various flow rates (200 < Re < 900), magnetic field intensities (B < 1,400 G), and particle volume fractions (φ = 0.5, 1, 2 and 3 %). Results show that using ferrofluid results in a maximum of 14 % improvement in heat transfer compared to the pure water, in the absence of magnetic field. This value grows up to 38 % when a magnetic field with the strength of 1,200 G is applied to the ferrofluid. On the other hand, it is observed that the significant heat transfer enhancement due to the magnetic field is always accompanied by a pressure drop penalty. The optimum operating condition is obtained based on the maximum heat transfer enhancement per pressure loss.