NiFe2O4/ZrO2 composite with varied compositional ratios was formed through solution‐based sol‐gel synthetic route. The ability to retain NiFe2O4/ZrO2 composite structures was dependent on the concomitant effect of temperature gradient and precursor concentration. The crystallization of t‐ZrO2 alongside the incidence of NiFe2O4 and NiO was evident at 900°C. However, the gradual elimination of NiO and simultaneous enhancement in NiFe2O4 content is inevitable at 1300°C. Morphological analysis of the composite revealed discrete distribution of ZrO2 and NiFe2O4 grains and also portrays the dense and pore‐free microstructures. Despite the presence of varied amount of NiFe2O4 in the composites, the resultant mechanical properties displayed relatively better values and exhibited good similarities with the hard tissue. As expected, a gradual increment in the ferrimagnetic properties as a function of enhanced NiFe2O4 content was induced. Further, in vitro analysis delivered good biocompatibility features of the investigated NiFe2O4/ZrO2 composite.