Co‐filled composites of micro magnesium dihydrate (MDH) and hydrophobically treated nano aluminum nitride (nH‐AlN) fillers in high temperature vulcanizing silicone gum are studied for thermal and dielectric characteristics for use as an insulating material in high voltage applications. The study begins with description of the compounding protocol adopted, followed by spectroscopic and optical characterization. Fourier transform infrared spectroscopy (FTIR) and energy dispersive X‐ray spectroscopy (EDX) analysis are used to verify the presence of nH‐AlN and MDH in the composites. Thermal analysis through thermogravimetric analysis revealed a stark enhancement in the onset of polymer degradation temperature, with an improvement of 208 °C achieved at 30 phr by weight loading level of MDH. Volume resistivity of 9.71 E14 Ω‐cm is obtained at 30 phr weight loading of MDH and 5 phr of nH‐AlN. AC, +DC, and −DC dielectric strength improved by 1.09, 2.06, and 1.08 times for co‐filled composites at 30 phr MDH and 5 phr nH‐AlN loading levels over unitary filled composite. Effect of dielectric polarization on dielectric constant and dissipation factor is studied at various frequencies. Limitations while conducting dry arc resistance test at standard voltage of 12.50 kV is discussed, with modification in dry arc resistance test voltage to 16.95 kV. The results are presented and discussed here.