Core–shell structures with magnetic core and metal/polymer shell provide a new opportunity for constructing highly efficient mediator for magnetic fluid hyperthermia. Herein, a facile method is described for the synthesis of superparamagnetic LSMO@Pluronic F127 core–shell nanoparticles. Initially, the surface of the LSMO nanoparticles is functionalized with oleic acid and the polymeric shell formation is achieved through hydrophobic interactions with oleic acid. Each step is optimized to get good dispersion and less aggregation. This methodology results into core–shell formation, of average diameter less than 40 nm, which was stable under physiological conditions. After making a core–shell formulation, a significant increase of specific absorption rate (up to 300%) has been achieved with variation of the magnetization (< 20%). Furthermore, this high heating capacity can be maintained in various simulated physiological conditions. The observed specific absorption rate is almost higher than Fe3O4. MTT assay is used to evaluate the toxicity of bare and core–shell MNPs. The mechanism of cell death by necrosis and apoptosis is studied with sequential staining of acridine orange and ethidium bromide using fluorescence and confocal microscopy. The present work reports a facile method for the synthesis of core–shell structure which significantly improves SAR and biocompatibility of bare LSMO MNPs, indicating potential application for hyperthermia.