The magnetic moment and the magnetic order induced by localized defects, like vacancies, interstitials, and/or nonmagnetic (NM) ions, in a NM oxide atomic lattice are discussed. When the defect concentration is of the order of or larger than ≈3 at%, magnetic order at room temperature can appear. Herein, the theoretical basic principles needed to understand and compute this new magnetic phenomenon in solids are developed in detail. In particular, the main results of density functional theory (DFT) calculations are used to estimate the magnetization and X‐ray magnetic circular dichroism (XMCD) values. The main experimental evidences on this phenomenon are reviewed, especially magnetization, the element‐specific XMCD, and transport properties in two selected oxides, ZnO and TiO2. Emphasis is given on the simplicity and efficiency ion irradiation methods have to trigger magnetic order in these oxides as well as a very sensitive method to characterize magnetic impurities. Two possible applications of this phenomenon are discussed, namely spin filtering at magnetic/NM interfaces in ZnO and perpendicular magnetic anisotropy triggered in TiO2 anatase microstructures. The existing literature on defect‐induced magnetism in oxides is shortly reviewed, which provides further evidence on the robustness of this phenomenon in solids.