The objective of this paper is to investigate fluid‐structure interaction (FSI) within conjugate natural convection. An oscillating fin, featuring a heat source placed at different locations, is examined using the Arbitrary Lagrangian–Eulerian formulation. The Galerkin finite element method is utilized to solve nonlinear dimensionless equations. Verification of grid independence is conducted and the model undergoes validation. Simulation outcomes for three fin positions (left, center, and right) and three heat source locations (bottom, middle, and top) are presented, illustrating streamlines, isotherms, and the average Nusselt number. The governing equations and boundary conditions are addressed using the finite element method. Temperature profiles in four scenarios are analyzed, along with horizontal velocities at different levels (0, D/2, D from the bottom wall). Dimensionless time (10−5 ≤ t ≤ 3), Ra = 106, Kr = 10, E = 1011 are used as parameters. The impact of the heat source position on vibratory motion is evaluated through Nusselt number variation, affecting heat exchange in different cases. The results show that heat transfer is minimal for a source location at the center of the fin (c). These findings also offer insights into FSI applications in economics and industry, guiding practical design considerations. Additionally, coupling the vibratory motion of the heat source with the flexible oscillating fin at the same frequency enhances understanding of the system.