This chapter starts with solid-state magnetism, which describes the atomic origins of magnetism using some fundamental quantum mechanical ideas and introduces different types of magnetic materials, including diamagnetism, paramagnetism, ferromagnetism, antiferromagnetism, and ferrimagnetism. Then, we discussed the magnetic properties of magnetic materials in the liquid state and discovered that, except for liquid oxygen, none of the other materials are magnetic since their melting points are higher than the Curie point. Following this, a water/organic solvent-based magnetic fluid is introduced, and a distinction was made between ferromagnetic fluids and magnetorheological fluids. We next describe the critical factors of ferrofluid synthesis and, in the process, focus on the preparation of magnetic nanoparticles. Also, the factors affecting the stability of ferromagnetic fluids are described in detail. Finally, the advantages of liquid metal-based magnetic fluid over water/organic solvent-based magnetic fluid and the techniques for characterizing liquid metal-based magnetic fluid are presented.