Temperature-sensitive Poly (N-isopropylacrylamide), PNIPA gels were synthesized with micron-sized iron and iron oxide (Fe3O4) particles to investigate their viability for hyperthermia applications. Induction heating of the magnetic hydrogels with varying concentration of magnetic powder was conducted at a frequency of 375 kHz for magnetic field strength varying from 1.7 kA/m (21 Oe) to 2.5 kA/m (31.4 Oe). It was observed that the maximum temperature induced in the magnetic hydrogels increased with the concentration of magnetic particles and magnetic field strength. The PNIPA gel underwent a collapse transition at 34 A degrees C. It was found that a 2.5 wt.% Fe3O4 in PNIPA composite took 260 s to be heated to 45 A degrees C under a magnetic field strength of 1.7 kA/m, the specific absorption rate (SAR) was found to be 1.83. SAR of iron oxide was found to be higher than the SAR of iron.