This study investigates the response of magnetic nanoparticles (MNPs), dispersed in a viscoelastic hydrogel, to an external rotating magnetic field (RMF) for the purpose of developing a new class of magneto-responsive materials with tunable mass transport properties. Ferrogels were prepared by chemical cross-linking and polymerization of acrylamide in colloidal dispersions of thermally blocked MNPs of cobalt ferrite. Magnetization measurements of ferrogels in a swollen state revealed a transitional state from ferromagnetism to superparamagnetism through the shrinkage of hysteresis loops and the reduction of remanent magnetization. A quantitative analysis of magnetization data indicated the existence of hydrodynamically free MNPs, susceptible to Brownian relaxation along with the blocked ones. It was found through rheological analysis that inclusion of MNPs within the polymer matrix significantly alters the ferrogel's elasticity. At low chemical crosslinking ratios, MNPs improve elastic