In this work, Sm3+ and Zn2+ co-substituted magnetite Zn0.1SmxFe2.9-xO4 (x = 0.0, 0.01, 0.02, 0.03, 0.04 and 0.05) nanoparticles, have been prepared via co-precipitation method and were electrostatically and sterically stabilized by citric acid and pluronic F127 coatings. The coated nanoparticles were well dispersed in an aqueous solution (pH 5.5). Magnetic and structural properties of the nanoparticles and their ferrofluids were studied by different methods. XRD studies illustrated that all as-prepared nanoparticles have a single phase spinel structure, with lattice constants affected by samarium cations substitution. The temperature dependence of the magnetization showed that Curie temperatures of the uncoated samples monotonically increased from 430 to 480 °C as Sm3+ content increased, due to increase in A-B super-exchange interactions. Room temperature magnetic measurements exhibited a decrease in saturation magnetization of the uncoated samples from 98.8 to 71.9 emu/g as the Sm3+ content increased, which is attributed to substitution of Sm3+ (1.5 µB) ions for Fe3+ (5 µB) ones in B sublattices. FTIR spectra confirmed that Sm3+ substituted Zn0.1SmxFe2.9-xO4 nanoparticles were coated with both citric acid and pluronic F127 properly. The mean particle size of the coated nanoparticles was 40 nm. Calorimetric measurements showed that the maximum SLP and ILP values obtained for Sm3+ substituted nanoparticles were 259 W/g and 3.49 nHm2/kg (1.08 mg/ml, measured at f = 290 kHz and H = 16kA/m), respectively, that are related to the sample with x = 0.01. Magnetic measurements revealed coercivity, which indicated that hysteresis loss may represent a substantial portion in heat generation. Our results show that these ferrofluids are potential candidates for magnetic hyperthermia applications.