Nanostructured functional oxides play an important role in enabling clean energy technologies and novel memory and processor devices. Using thin‐film La0.6Sr0.4FeO3 (LSF) as a model system, the novel utility of exsolution in fabricating self‐assembled metal oxide nanocomposites with tunable functionalities is shown. Exsolution triggers the formation of metallic iron (Fe0) nanoparticles, Ruddlesden–Popper domains, and nm‐scale percolated Fe‐deficient channels in LSF. Combining multimodal characterization with numerical modeling, the chemical, magnetic, and electrical properties of the exsolution‐synthesized nanocomposite at different stages of Fe0 exsolution as well as during redox cycling are assessed. After exsolution, the electronic conductivity of the nanocomposite LSF increased by more than two orders of magnitude. Based on numerical analysis representing all the constituents, it is expected that this increase in conductivity originates mainly from the Fe‐deficient percolating channels formed during exsolution. Moreover, the exsolved nanocomposite is redox‐active even at moderate temperatures. Such redox capabilities can enable dynamic control of the nanocomposite functionality by tailoring the oxygen non‐stoichiometry. This concept is demonstrated with a continuous modulation of magnetization between 0 and 110 emu cm−3. These findings point out that exsolution may serve as a platform for scalable fabrication of complex metal oxide nanocomposites for electrochemical and electronic applications.