A series of dinuclear lanthanide(III) complexes having general formulae [Ln2L2(thd)4] ⋅ 2CH3CN {Ln=DyIII(1), TbIII(2), GdIII(3), ErIII(4)} were successfully synthesized using Schiff base (E)‐2‐((pyridin‐2‐ylmethylene)amino)phenol (LH) and co‐ligand 2,2,6,6‐Tetramethyl‐3,5‐heptanedione (Hthd). The single crystal XRD data shows that complexes possess a dinuclear planar [Ln2(μ2‐O)2]4+ core where phenolate oxygen atoms act as bridges between the two LnIII ions, and that the coordination sphere of LnIII with eight coordination has distorted trigonal dodecahedron geometry. The magnetic analysis shows complex 1 is a single molecule magnet having a zero‐field effective energy barrier (Ueff) of 54.02 K and relaxation time of τo=4.45×10−6 s. Field‐induced SMM behavior has been observed for 4 with an effective energy barrier of 26.9 K and τ0=2.4×10−9 s. CASSCF+RASSI‐SO calculations on 1, 2 and 4 provide deep insight regarding the electronic structure and single‐ion anisotropy of lanthanide ions. Further, using state‐of‐the‐art ab initio calculations, the nature of magnetic anisotropy and magnetic exchange interaction between the LnIII centers is analyzed to shed light on the magnetic dynamics of all the complexes 1–4.