In the present study, plant‐mediated synthesis of iron oxide nanoparticles (IONPs) using leaves extract of Rhamnus virgata (Roxb.) as a potential stabilizing, reducing and chelating agent is reported. The biogenic IONPs are extensively characterized for their physical and biological properties. The morphology, structure and physicochemical properties of biogenic IONPs were characterized using ultraviolet spectroscopy, X‐ray diffraction, Fourier transform‐infrared analysis, scanning electron microscopy, energy‐dispersive spectroscopy, transmission electron microscopy, Raman spectroscopy and dynamic light scattering. The Scherrer equation deduced a mean crystallite size of ~20 nm for IONPs. Detailed in vitro biological activities revealed significant therapeutic potentials for IONPs. Potential antibacterial and antifungal activities are reported for IONPs. Bioinspired IONPs have shown potential results against HepG2 cells (IC50: 13.47 μg/ml). Dose‐dependent cytotoxicity assays were revealed against Leishmania tropica (KMH23) promastigotes (IC50: 8.08 μg/ml) and amastigotes (IC50: 20.82 μg/ml) using different concentrations of IONPs (1–200 μg/ml). The cytotoxic activity was also studied using brine shrimps, and their IC50 value was calculated as 32.41 μg/ml. Significant antioxidant [TAC (51.4%), DPPH (79.4%) and total reducing power (62%)], protein kinase and alpha amylase inhibition assays were revealed. The biocompatibility assays using red blood cells (> 200 μg/ml) and macrophages (> 200 μg/ml) confirmed the biosafe nature of IONPs. In conclusion, bioinspired IONPs have shown potential biological applications and should be subjected to further research work to develop their nano‐pharmacological relevance in biomedical applications.