A catalytic system for selective transformation of furfural into biofuel is highly desirable. However, selective hydrogenation of the C=O group over the furan ring of furfural to produce ether in one step is challenging. Here, we report the preparation of a series of magnetically recoverable FeCo@GC nano‐alloys (37–40 nm). Fe3O4 (3–5 nm) and MOF‐71 (Co), used as the Co and C source, were mixed together in a range of Fe/Co ratios, and then encapsulated in a graphitic carbon (GC) shell to prepare such alloys. STEM‐HAADF shows the darker core made of FeCo and the shell of graphitic carbon. Furfural is hydrogenated to produce >99% isopropyl furfuryl ether in isopropanol with >99% conversion at 170 °C under 40 bars of H2, whereas n‐chain alcohol, such as ethanol, produces corresponding ethyl levulinate in 93%. The synergistic effect due to the charge transfer from Fe to Co leads to higher reactivity of FeCo@GC. The catalyst, which can be separated from the reaction medium using a simple magnet without significant damage to the surface or composition, retained its reactivity and selectivity for up to four consecutive cycles.