Ferrofluids are typically suspensions of magnetite nanoparticles, and behave as a homogeneous continuum. The ability of the ferrofluid to respond to an external magnetic field in a controllable manner has made it emerge as a smart material in a variety of applications, such as seals, lubricants, electronics cooling, shock absorbers and adaptive optics. Magnetic nanoparticle suspensions have also gained attraction recently in a range of biomedical applications, such as cell separation, hyperthermia, MRI, drug targeting and cancer diagnosis. In this review, we provide an introduction to mathematical modeling of three problems: motion of superparamagnetic nanoparticles in magnetic drug targeting, the motion of a ferrofluid drop consisting of chemically bound nanoparticles without a carrier fluid, and the breakage of a thin film of a ferrofluid.