Photothermal therapy (PTT) can overcome cancer treatment resistance by enhancing cell membrane permeability, facilitating drug accumulation, and promoting drug release within the tumor tissue. Iron oxide nanoparticles (IONPs) have emerged as effective agents for PTT due to their unique properties and biocompatibility. Approved for the treatment of anemia, as MRI contrast agents, and as magnetic hyperthermia mediators, IONPs also offer excellent light-to-heat conversion and can be manipulated using external magnetic field for targeted accumulation in specific tissues. Optimizing parameters such as laser wavelength, power density, shape, size, iron oxidation state, functionalization, and concentration is crucial for IONPs effectiveness. In addition to PTT, IONPs enhance other cancer treatment modalities. They improve tumor oxygenation enhancing the efficacy of radiotherapy and photodynamic therapy. IONPs can also trigger ferroptosis, a programmed cell death pathway mediated by iron-dependent lipid peroxidation. Their magneto-mechanical effect can exert mechanical force on cancer cells to destroy tumors, minimizing damage to healthy tissues. This review outlines strategies for managing photothermal performance and PTT efficiency with iron oxide nanoparticles, as well as synergies with other cancer therapies.