Magnetism is the class of physical attributes that are mediated by a magnetic field, which refers to the capacity to induce attractive and repulsive phenomena in other entities. Electric currents and the magnetic moments of elementary particles giving rise to a magnetic field, which acts on other currents and magnetic moments. Magnetism is one aspect of the combined phenomena of electromagnetism. The most familiar effects occur in ferromagnetic materials, which are strongly attracted by magnetic fields and can be magnetized to become permanent magnets, producing magnetic fields themselves. Demagnetizing a magnet is also possible. Only a few substances are ferromagnetic; the most common ones are iron, cobalt, and nickel and their alloys. The rare-earth metals neodymium and samarium are less common examples. The prefix ferro- refers to iron because permanent magnetism was first observed in lodestone, a form of natural iron ore called magnetite, Fe₃O₄.

All substances exhibit some type of magnetism. Magnetic materials are classified according to their bulk susceptibility. Ferromagnetism is responsible for most of the effects of magnetism encountered in everyday life, but there are actually several types of magnetism. Paramagnetic substances, such as aluminium and oxygen, are weakly attracted to an applied magnetic field; diamagnetic substances, such as copper and carbon, are weakly repelled; while antiferromagnetic materials, such as chromium and spin glasses, have a more complex relationship with a magnetic field. The force of a magnet on paramagnetic, diamagnetic, and antiferromagnetic materials is usually too weak to be felt and can be detected only by laboratory instruments, so in everyday life, these substances are often described as non-magnetic.

The magnetic state (or magnetic phase) of a material depends on temperature, pressure, and the applied magnetic field. A material may exhibit more than one form of magnetism as these variables change.

The strength of a magnetic field almost always decreases with distance, though the exact mathematical relationship between strength and distance varies. Different configurations of magnetic moments and electric currents can result in complicated magnetic fields.

Only magnetic dipoles have been observed although some theories predict the existence of magnetic monopoles.