Lithium iron silicate (LFS) attracts a lot of attention due to its 330 mAh g−1 theoretical capacity (2 Li+ per formula unit). However, inherently it exhibits poor Li‐ion intercalation kinetics, interfacial reactivity, and complex phase transitions resulting in lower than one Li+ capacity and poor retention. In this work, a core–shell architecture is devised largely overcoming these obstacles. At first, the nanostructure of Pmn21 LFS is annealed via mechanochemical processing enabling the activation of Li‐ion diffusion. Subsequently, the LFS nanocrystals are coated via in situ poly(3,4‐ethylenedioxythiophene) (PEDOT) polymerization involving partial chemical de‐lithiation/re‐lithiation, the latter catalyzed with FeCl3. As a result of the devised mechanochemical/interphasial engineering of the LFS@PEDOT nanocrystals, their Li‐ion storage capacity is augmented to > 1 Li, namely 200 mAh g−1 after 50 cycles or 1.2 Li+ units—the highest capacity reported for the Pmn21 LFS cathode. A key attribute of the new PEDOT coating technique is the generation of a Fe3+‐rich subsurface layer that contributes to structure stabilization via accelerated phase transition to inverse Pmn21 phase, in addition to rendering the nanocrystals electronically conductive and protected against reaction with electrolyte. Such core–shell engineered nanocrystals provide a powerful paradigm in developing viable high energy density cathodes for next‐generation Li‐ion batteries.