Nanocomposite hydrogels are a new class of intelligent materials, which have recently attracted interest as biomaterials. In this study, magnetic nanocomposites of temperature responsive hydrogels have been developed and demonstrated to be responsive to alternating magnetic fields. Nanocomposites were synthesized by incorporation of superparamagnetic Fe3O4 particles in negative temperature responsive poly (N-isopropylacrylamide) hydrogels. Effect of different crosslinkers and crosslinking densities was studied on temperature responsive swelling of the hydrogels. The systems were characterized for remote heating on application of alternating magnetic field, and also for remote controlled drug delivery applications. The rise in temperature in external alternating magnetic field depends on Fe3O4 particle loading of the system. Remote controlled drug release studies with different drugs showed reduced release in the presence of an alternating magnetic field. The kinetic studies of the redox polymerization reaction were performed with FTIR.