In this study, novel nanomagnetic catalysts, namely Fe2O3-MgO@choline formate (Ch. F.) and Fe2O3-MgO@choline cyanide (Ch. CN), were synthesized through immobilizing choline-based ion liquids to magnetic support via a simple and cost-effective methodology. FT-IR, TGA, FE-SEM, VSM, EDS, BET, and XRD techniques were employed to assess and characterize these organic–inorganic compounds. Following the successful preparation of nanoparticles, the catalysts were utilized in Knoevenagel and benzoin condensations. Fe2O3-MgO@Ch.F. exhibited exceptional activity in Knoevenagel condensation under solvent-free conditions at room temperature, achieving high yields (91–98%) in a short timeframe. Similarly, Fe2O3-MgO@Ch.CN demonstrated remarkable activity in benzoin condensation under environmentally friendly solvent conditions, yielding higher isolated yields (76–88%). Furthermore, these magnetically recyclable multifunctional catalysts displayed the ability to be reused up to five times without a significant loss in efficiency. Additionally, the heterogeneity of this nanocatalyst was investigated using the hot filtration technique. The findings indicated that the reaction primarily occurs via a heterogeneous pathway.