Alkane oxyhalogenation has emerged as an attractive catalytic route for selective natural gas functionalization to important commodity chemicals, such as methyl halides or olefins. However, few systems have been shown to be active and selective in these reactions. Here, we identify a novel and highly efficient TiC–SiC composite for methane and ethane oxyhalogenation. Detailed characterization elucidates the kinetics and mechanism of the selective activation under reaction conditions to yield TiO2–TiC–SiC. This catalyst outperforms bulk TiO2, one of the best reported catalysts, reaching up to 85 % selectivity and up to 3 times higher titanium‐specific space‐time‐yield of methyl halides or ethylene. This is attributed to the fact that the active TiO2 phase generated in situ is embedded in the thermally conductive SiC matrix, facilitating heat dissipation thus improving selectivity control.