Enhancing solar photovoltaic and thermal conversion performances may help develop more environmentally friendly hybrid photovoltaic/thermal (PV/T) systems that can be used in applications ranging from household to industrial scales. Owing to their enhanced thermal and optical properties, nanofluids have proven to be good candidates for designing PV/T systems with superior performances. As smart nanofluids, magnetic nanofluids (MNFs) can further enhance the performances of PV/T systems under external magnetic fields. This paper reviews recent developments in enhancing the electrical and thermal performances of PV/T systems using magnetic nanofluids. Various parameters affecting the performances are highlighted, and some areas for further investigations are discussed. The reviewed literature shows that PV/T systems with MNFs are promising. However, their performances need further investigation before they can be used in applications.