Iron oxide (Fe3O4) containing magnetic chitosan nanoparticles were prepared with Concanavalin-A and Bleomycin as multifunctional nanocarriers for the targeted cancer therapy by co-precipitation techniques. The chemical structures of nanoparticles were analyzed by FTIR and the magnetic properties of the nanoparticles were evaluated by electron spin resonance technique and vibrational scanning mangnetometer measurements. The in vitro release profiles of Bleomycin were investigated and chitosan nanoparticles characteristics were optimized for subsequent in vivo applications. The magnetic chitosan nanoparticles are biocompatible-based MTT assays. The therapeutic potential of these nanoparticles are being investigated for in vivo applications.