Supercapacitors have emerged as highly efficient energy storage devices, relying on electrochemical processes. The performance of these devices can be influenced by several factors, with key considerations including the selection of electrode materials and the type of electrolyte utilized. Transition metal oxide electrodes are commonly used in supercapacitors, as they greatly influence the electrochemical performance of these devices. Nonetheless, ferrites' low energy density poses a limitation. Hence, it is crucial to create electrode materials featuring unique and distinct structures, while also exploring the ideal electrolyte types, to enhance the electrochemical performance of supercapacitors incorporating magnesium ferrites (MF). In this study, we effectively prepared magnesium ferrites (MgFe2O4) supported on activated carbon (AC) derived from orange peels (OP) using a simple hydrothermal method. The resulting blends underwent comprehensive characterization employing various methods, including FTIR, XRD, TEM, SEM, EDX, and mapping analysis. Moreover, the electrochemical performance of MgFe2O4@AC composites was evaluated using GCD and CV techniques. Remarkably, the MF45-AC electrode material showed exceptional electrochemical behavior, demonstrating a specific capacitance of 870 F·g−1 within current density of 1.0 A g−1 and potential windows spanning from 0 to 0.5 V. Additionally, the prepared electrodes displayed exceptional cycling stability, with AC, MF, and MF45-AC retaining 89.6%, 94.2%, and 95.1% of their initial specific capacitance, respectively, even after 5000 cycles. These findings underscore the potential of MF-AC composites as superior electrode materials for supercapacitors. The development of such composites, combined with tailored electrolyte concentrations, holds significant promise for advancing the electrochemical performance and energy density of supercapacitor devices.