The inefficacy of the currently used treatment modalities for osteoarthritis has elicited considerable research interest in the exploration of alternative methods. Hyperthermia treatment, generally used in the case of lesions, maybe considered as a viable solution owing to the economic and ergonomic factors involved. In the present study, Cr-doped Fe2O3 embedded in PVDF matrix is proposed as the biocompatible magnetic-dielectric composite to provide thermo-regulated prolonged treatment. A systematic study was carried out to characterize the physical properties of the prepared formulation. Further, cellular uptake studies were done to ensure bioviability. Finite element method studies using COMSOL were used to simulate the hyperthermia treatment of osteoarthritic knee joint. The approach proposed here may be used further to develop a novel class of therapeutic devices for the treatment of osteoarthritis.