A new contribution to friction is predicted to occur in systems with magnetic correlations: Tangential relative motion of two Ising spin systems pumps energy into the magnetic degrees of freedom. This leads to a friction force proportional to the area of contact. The velocity and temperature dependence of this force are investigated. Magnetic friction is strongest near the critical temperature, below which the spin systems order spontaneously. Antiferromagnetic coupling leads to stronger friction than ferromagnetic coupling with the same exchange constant. The basic dissipation mechanism is explained. A surprising effect is observed in the ferromagnetically ordered phase: The relative motion can act like a heat pump cooling the spins in the vicinity of the friction surface.