The diverse applications of nanomaterials, and their rapidly increasing demand, have spurred the development of novel multifunctional materials. As such, this study aimed to synthesize and characterize a magneto-luminescent nanocomposite, composed of magnetite and fluorescent quantum dots (NaGdF4:Nd3+@Fe3O4). Nanomaterial synthesis was accomplished through solvothermal and co-precipitation methods. Stable nanoparticles (NPs) with a zeta potential of -19.57 ± 0.42 mV, and a size of 4.55 ± 1.44 nm were obtained. The crystalline structure of the NPs, verified via X-ray diffraction, affirmed the hexagonal pattern of the NaGdF4:Nd3+ NPs and the inverse spinel pattern of Fe3O4 NPs. In the diffraction pattern of the NaGdF4:Nd3+@Fe3O4 NPs, only the phase pertaining to the Fe3O4 NPs was identified, indicating their influence on the nanocomposite. Magnetic measurements revealed the superparamagnetic behavior of the material. Photoluminescence spectra of NaGdF4:Nd3+ and NaGdF4:Nd3+@Fe3O4 NPs verified the luminescent emission around 1060 nm; a feature of the radiative transitions of Nd3+ ions. Based on the assessed characteristics, the nanocomposite’s multifunctionality was confirmed, positioning the material for potential use in various fields, such as biomedicine.