“Gel-type” soft and stretchable magneto-mechanical composites made of silicone rubber and iron particles are in focus because of their high magnetic sensitivity, and intelligence perspective. The “intelligence” mentioned here is related to the “smartness” of these magneto-rheological elastomers (MREs) to tune the “mechanical stiffness” and “output voltage” in energy-harvesting applications by switching magnetic fields. Hence, this work develops “gel-type” soft composites based on rubber reinforced with iron particles in a hybrid with piezoelectric fillers such as barium titanate. A further aspect of the work relies on studying the mechanical stability of intelligence and the stretchability of the composites. For example, the stretchability was 105% (control), and higher for 158% (60 per 100 parts of rubber (phr) of barium titanate, BaTiO3), 149% (60 phr of electrolyte iron particles, EIP), and 148% (60 phr of BaTiO3 + EIP hybrid). Then, the magneto-mechanical aspect will be investigated to explore the magnetic sensitivity of these “gel-type” soft composites with a change in mechanical stiffness under a magnetic field. For example, the anisotropic effect was 14.3% (60 phr of EIP), and 4.4% (60 phr of hybrid). Finally, energy harvesting was performed. For example, the isotropic samples exhibit ~20 mV (60 phr of BaTiO3), ~5.4 mV (60 phr of EIP), and ~3.7 mV (60 phr of hybrid). However, the anisotropic samples exhibit ~5.6 mV (60 phr of EIP), and ~8.8 mV (60 phr of hybrid). In the end, the composites prepared have three configurations, namely one with electro-mechanical aspects, another with magnetic sensitivity, and a third with both features. Overall, the experimental outcomes will make fabricated composites useful for different intelligent and stretchable applications.