The aim of this study was to modify the surfaces of magnetic iron oxide nanoparticles (IOPs) with gelatin in order to reduce cytotoxicity and enhance cellular uptake. The gelatin-coated IOPs were characterized in terms of their functionalization, size, surface charge, morphology and crystalline structure using Fourier transform infrared (FT-IR) spectroscopy, thermogravimetric analysis (TGA), dynamic light scattering (DLS), transmission electron microscopy (BIO-TEM) and x-ray diffraction (XRD) analysis. The cytotoxicity of the gelatin-coated IOPs to human fibroblasts was assessed using an MTT-assay and was compared with uncoated IOPs. Similarly, the cellular uptake of the coated and uncoated IOPs was visualized using BIO-TEM and quantified using inductively coupled plasma spectroscopy (ICPS). As shown by the Fourier emission scanning electron microscopy (FE-SEM) and viability test, the massive uptake of uncoated IOPs lead to reduced viability. However, gelatin coating lead to increased viability and slow uptake without any visible distortion to the cell morphology.