Due to their different properties compared to other materials, nanoparticles of iron and iron oxides are increasingly used in the food industry. Food technologists have especially paid attention to their ease of separation by magnetic fields and biocompatibility. Unfortunately, the consumption of increasing amounts of nanoparticles has raised concerns about their biotoxicity. Hence, knowledge about the applicability of iron nanoparticle-based materials in the food industry is needed not only among scientists, but also among all individuals who are involved in food production. The first part of this article describes typical methods of obtaining iron nanoparticles using chemical synthesis and so-called green chemistry. The second part of this article describes the use of iron nanoparticles and iron nanoparticle-based materials for active packaging, including the ability to eliminate oxygen and antimicrobial activity. Then, the possibilities of using the magnetic properties of iron nano-oxides for enzyme immobilization, food analysis, protein purification and mycotoxin and histamine removal from food are described. Other described applications of materials based on iron nanoparticles are the production of artificial enzymes, process control, food fortification and preserving food in a supercooled state. The third part of the article analyzes the biocompatibility of iron nanoparticles, their impact on the human body and the safety of their use.