Mott insulator VO2 exhibits an ultrafast and reversible semiconductor‐to‐metal transition (SMT) near 340 K (67 °C). In order to fulfill the multifunctional device applications, effective transition temperature (Tc) tuning as well as integrated functionality in VO2 is desired. In this study, multifunctionalities including tailorable SMT characteristics, ferromagnetic (FM) integration, and magneto‐optical (MO) coupling, have been demonstrated via metal/VO2 nanocomposite designs with controlled morphology, i.e., a two‐phase Ni/VO2 pillar‐in‐matrix geometry and a three‐phase Au/Ni/VO2 particle‐in‐matrix geometry. Evident Tc reduction of 20.4 to 54.9 K has been achieved by morphology engineering. Interestingly, the Au/Ni/VO2 film achieves a record‐low Tc of 295.2 K (22.2 °C), slightly below room temperature (25 °C). The change in film morphology is also correlated with unique property tuning. Highly anisotropic magnetic and optical properties have been demonstrated in Ni/VO2 film, whereas Au/Ni/VO2 film exhibits isotropic properties because of the uniform distribution of Au/Ni nanoparticles. Furthermore, a strong MO coupling with enhanced magnetic coercivity and anisotropy is demonstrated for both films, indicating great potential for optically active property tuning. This demonstration opens exciting opportunities for the VO2‐based device implementation towards smart windows, next‐generation optical‐coupled switches, and spintronic devices.