RGO-incorporated α-Fe 2 O 3 nanocomposites are in the spotlight for their outstanding performance in a variety of fields, spanning from energy storage to biomedicine. Thus, understanding the temperature-dependent spin dynamics and phonon signatures of such magnetic graphene nanocomposites is crucial for optimizing the synthesis according to the demands. This study investigates the unique magnetism and intriguing interfacial effects in hydrothermally reduced graphene oxide-incorporated hematite nanoparticles (α-Fe 2 O 3 /PRGO) using DC magnetization and temperature-dependent Raman measurements, complemented with XRD, SEM, and XPS analysis. The interfacial p z -d hybridization plays a key role in stabilizing such inhomogeneous nanocomposites by bringing long-range strain energy and enhancing both spin−phonon and electron−phonon couplings. M(H) and M(T) curves speak about various magnetic interactions and anisotropies as a function of temperature and field. The Morin transition temperature is around 183 K, and the magnetic transition range is 150−230 K. Additionally, both peak positions and respective line widths of metal oxide phonon peaks experience anomalies in the same Morin transition temperature range. We believe that this is because of the interfacial Dzyaloshinskii−Moriya interaction emerging due to PRGO wrapping onto α-Fe 2 O 3 nanoparticles. The weakly linear nature of G and D bands with temperature variation is discussed considering the literature. Herein, we have outlined a phenomenological model of the temperature-dependent charge transfer effect at the interface, which can explain the experimental findings. According to the model, the Anderson localization of free electrons cannot lead to better charge sharing at low temperatures; however, it becomes active above 100 K due to a balanced spin−charge−lattice coupling and persists up to room temperature, after which thermally induced disorders further limit the interfacial process. In particular, these correlated magnetic and Raman investigations unveil the details of the underlying physical processes of such nanocomposites and explore the system's viability for spintronics, electronics, and biomedical applications.