We review the recent theoretical study on the optical properties of one-dimensional soft photonic crystals (1D SPCs) with ferrofluids. The proposed structure is composed of alternating ferrofluid layers and dielectric layers. For the ferrofluid, single domain ferromagnetic nanoparticles can align to a chain under the stimuli of an external magnetic field, thus changing the microstructure of the system. Meanwhile, nonlinear optical responses in ferrofluids are also briefly reviewed.