Suspensions of magnetic nanoparticles or ferrofluids can be effectively controlled by magnetic fields, which opens up a fascinating field for basic research into fluid dynamics as well as a host of applications in engineering and medicine. The introductory chapter provides the reader with basic information on the structure, and magnetic and viscous properties of ferrofluids. The bulk of this monograph is based on the author's own research activity and deals with ferrohydrodynamics, especially with the magnetoviscous effects. In particular, the author studies in detail the interparticle interactions so far often neglected but of great importance in concentrated ferrofluids. The basic theory and the most recent experimental findings are presented, making the book interesting reading for physicists or engineers interested in smart materials.