Metal nanoparticles are extensively studied due to their unique chemical and physical properties, which differ from the properties of their respective bulk materials. Likewise, the properties of heterogeneous bimetallic structures are far more attractive than those of single-component nanoparticles. The incorporation of a second metal into the nanoparticle structure alters the surface plasmon resonance and magnetic properties of the bimetallic composite. This review focuses on the enhanced optical and magnetic properties offered by bimetallic nanoparticles and their corresponding impact on biological applications. We summarize the predominant structures of bimetallic nanoparticles, outline their synthesis methods, and highlight their use in biological applications, both diagnostic and therapeutic, which are dictated by their various optical and magnetic properties.