With the rapid development of nanoscience and nanotechnology in recent years, growing research interest and efforts have been directed to study the biological effects of manufactured nanoparticles and substances alike. Despite the fact that significant progress has been made, this is still largely an uncharted field. Any advances in this field would certainly require thorough multi-disciplinary collaboration, in which the expertise and tools in nanoscience/nanotechnology, physics, chemistry and biomedicine have to be combined. Due to their wide range of applications in physics, chemistry and biomedicine, magnetic resonance (MR) imaging and spectroscopy are among the most important and powerful research tools currently in use, mainly because these techniques can be used in situ and noninvasively to acquire dynamic and real-time information in various samples ranging from protein solution to the human brain. In this paper, the application of MR imaging and spectroscopy in studying the biological effects of manufactured nanoparticles is discussed. It is expected that these techniques will play important roles in 1) detecting the presence of nanoparticles in biological tissues and in vivo, 2) studying the interactions between the nanoparticles and biomolecules and 3) investigating the metabonomic aspect of the biological effects of nanoparticles.