Urea was successfully immobilized on the surface of chloropropyl‐modified Fe3O4@SiO2 core–shell magnetic nanoparticles, then supported by MgBr2 and acts as a unique catalyst for oxidation of benzylic alcohols to aldehydes and ketones, and ortho‐formylation of phenols to salicylaldehydes. The prepared catalyst was characterized by FT‐IR, transmission electron microscopy, scanning electron microscopy, X‐ray powder diffraction, dispersive X‐ray spectroscopy, CHN and TGA. It was found that Fe3O4@SiO2 ~ urea/MgBr2 showed higher catalytic activity than homogenous MgBr2, and could be reused several times without significant loss of activity.