Magnetosomes of magnetotactic bacteria are of great interest in understanding biomineralization and possible links between organisms and geomagnetic field. Fossil magnetosomes are ubiquitous in marine and lake sediments and may significantly contribute to magnetic signals. In this review, we firstly introduce some characteristics of magnetotactic bacteria, followed by considering recent progress in magnetosome formation, magnetic measurements, and identification of bacterial magnetites in bulk sediments as well as their paleoenvironmental implications. Finally, we briefly discuss potential future breakthroughs in magnetosome studies and its applications.