Nano-sized curcumin-loaded super-paramagnetic iron oxide nanoparticles (CUR-OA-SPIONs) were synthesized chemically by co-precipitation method using oleic acid as a stabilizer and Myrj 52 as a surfactant. The synthesized nanoparticles were characterized for their shape, size, surface morphology, electrokinetic potential, magnetic properties, crystalinity, chemical interactions and thermal transitions. The synthesized CUR-OA-SPIONs were spherical, mono-dispersed, physically stable and super-paramagnetic in nature. In vitro localization study and aggregation dynamics of CUR-OA-SPIONs were studied with a flow of blood inside a square glass capillary (500 × 500 μm2 cross section) in the presence of an externally applied magnetic field (Ms = 1200 mT). This research which is first of its kind showed the fluorescent imaging of CUR-OA-SPIONs with respect to time to understand the aggregation dynamics of magnetic nanoparticles in a micro capillary simulating the case of targeted drug delivery system. The size of the aggregation increases with respect to time (t = 0+ s to t = 500 s), while no significant change in the size of the aggregate was observed after time t = 500 s.