Magnetic drug targeting (MDT) involves the localization of drug loaded iron oxide nanoparticles (IONPs) around the malignant tissue using external magnetic field for therapeutic purposes. The present in vitro study reports the visualization and motion of curcumin loaded IONPs (CU-IONPs) around the target site inside a microcapillary (500 × 500 μm2 square cross section), in the presence of an externally applied magnetic field. Application of magnetic field leads to transportation and aggregation of CU-IONPs toward the target site inside the capillary adjacent to the magnet. The localization/aggregation of CU-IONPs at the target site shows strong dependence on the strength of the applied magnetic field and flow rate of ferrofluid through the capillary. Such an in vitro study offers a viable for optimization and design of MDT systems for in vivo applications.